Could it possibly be true that in 2010 more people shelled out for vacation homes than they did for a primary residence? The answer appears to be yes according to a recent survey from HomeAway Inc., a Texas-based vacation rental online marketplace.

Vacation home sales beat out both primary residences and investment properties last year, with more than 500,000 sold. Vacation homebuyers are jumping into the market because of low real estate prices, attractive mortgage rates and the potential for price appreciation, according to HomeAway. The median sales prices for vacation properties dropped 11.2 percent to $150,000 in 2010 from $169,000 in 2009.

Nearly three-quarters (70 percent) of these consumers also said their purchase was influenced by rental income, with 94 percent planning on renting out the property over the next year. They’re hoping the rental income will cover at least half of their mortgage. I hope for their sake that’s the case too.

The state of this country’s housing finance system is in a precarious position, to say to least, and in effort to help influence the way it recovers, the Mortgage Bankers Association (MBA) – along with numerous other organizations – have set forth their own principles on how it should be done.

Here is what the national organization is calling for:

• A stable housing sector is essential for a robust economic recovery and long-term prosperity. Housing, whether through homeownership or rental, promotes social and economic benefits that warrant it being a national policy priority.

• Private capital must be the dominant source of mortgage credit, and it must also bear the primary risk in any future housing finance system.

• Some continuing and predictable government role is necessary to promote investor confidence and ensure liquidity and stability for homeownership and rental housing.

• Changes to the mortgage finance system must be done carefully and over a reasonable transition period to ensure that a reliable mortgage finance system is in place to function effectively in the years ahead.

What do you think? Should the federal government play a smaller role in housing financing? There’s been talk for a while of simply getting rid of Fannie Mae and Freddie Mac. Would something that drastic cure our housing woes?

But the MBA isn’t saying it wants to get rid of the government’s role entirely. The association states it believes a clearly defined role for the government is essential to preserving financial stability, with support through various insurance and guarantee mechanisms in order to facilitate long-term fixed-rate mortgages, affordable financing for low- and moderate-income borrowers and financing for rental housing in all parts of the country.

Bringing in more private investors does have its risks. The MBA said in order for private investors’ roles to work, it’s important that they understand the risks and rules involved. “It will be important to provide clarity and certainty to the marketplace in a manner that promotes recovery and growth,” the MBA said in a statement.

The other organizations involved in the housing finance principles include: American Bankers Association, American Financial Services Association, Community Mortgage Banking Project, CRE Finance Council, Housing Policy Council of the Financial Services Roundtable, Independent Community Bankers of America, Manufactured Housing Institute, Mortgage Insurance Cos. of America, National Apartment Association, National Association of Home Builders, National Association of Realtors, National Council of State Housing Agencies, National Multi Housing Council, Real Estate Roundtable, and the Securities Industry and Financial Markets Association.

The housing recovery in Connecticut may happen sooner than in other areas of the country if a recent report from California-based eBay Classifieds is to be believed.

Connecticut, along with seven other states, are said to be best places in the country to find employment. And not that it needs repeating, but everyone from economists to my landlord keep on saying that the housing market will only improve when the job market does.

Research from eBay Classifieds looked at personal income per capita, unemployment rates and crime rates in each state to determine which ones have the most buoyant economies. Connecticut has the highest personal income per capita in the country at $56,556.

The company then researched the largest occupations and the fastest growing occupations in each state and then found which cities had the largest median salary in each state to determine which industries were the best for finding a job.

You can look at all of the research here and see eBay Classifieds’s jobs map here and decide for yourself.

When it comes to the American Dream, what is it that you think of? Is it the promise of prosperity and success? Thanks in part to the Declaration of Independence, which guarantees life, liberty and the pursuit of happiness, Americans have a wide view of what exactly this dream can encompass.

For many, that dream still includes becoming a homeowner, according to a recent poll from Allstate and the National Journal Group, even though this country is still trying desperately to recover from a collapsed economy and a real estate market that can’t keep its head above water.

The poll found that nearly nine out of 10 homeowners would buy their homes again. That’s saying a lot, considering prices have plummeted and home financing has increasingly become more difficult to secure. Nearly three-quarters would tell a family member or friend to buy a home as a long-term asset.

These numbers are a little hard to believe when only 35 percent of poll respondents said they thought their personal financial situations would improve over the next year. Were the other 65 percent not affected at all by the collapse of this country’s financial market, or have they not learned anything from the events that have occurred over the last few years?

Ronald Brownstein, editorial director of the National Journal Group said that “homeownership retains a powerful, almost tidal, grip on the American imagination. Even the economic experiences of the last several years don’t seem to have dimmed the yearning for ownership.”

Don’t get me wrong. I want people to buy homes and for the housing market to recover. But I don’t want more people buying homes that can’t afford them or are still in precarious financial situations.

Real estate experts are saying that Generation X –young families and adults ages 31 to 45 – are going to lead the homebuying recovery as it gets underway.

Gen X represents nearly one-third of the population that are of homebuying age (at least 30 years old), according to the National Association of Home Builders (NAHB). And while this segment of the population doesn’t represent the largest cohort, they are the “most mobile,” Mollie Carmichael, principal of John Burns Real Estate Consulting in Irvine, Calif. said at an educational webinar.

Gen Xers are beginning to think it’s a good time to get off the fence about whether to buy a home. This younger segment of the population is also going to have strong opinions about the design features their new homes will include, according to the NAHB.

Who does represent the largest potential homebuying segment of the population? Baby boomers. However, Carmichael said they’re more likely to continue to wait for the market to improve before investing in a home. Their decisions to delay retirement – in large part a result of the financial meltdown – are also playing a key factor in their decisions to downsize into smaller homes - which may be news to the Toll Brothers.

In stark contrast, Gen X reports wanting bigger homes than they have now.

“These are first-time buyers or younger families looking for more room to grow,” Carmichael said.

Community amenities are important to Gen X buyers, with nearly half preferring a home in a large-lot, suburban development, versus the 21 percent looking for a traditional or “walkable” neighborhood.

It appears that some in the real estate world think Connecticut residents are ready to lay down some serious cash for homes again. Toll Brothers, a Pennsylvania-based homebuilder, is getting ready to open not one, but two luxury home communities in the Nutmeg State.

These crème-de-la-crème neighborhoods in Stonington and Wallingford will sell single-family homes starting in the mid-$400,000. I don’t know about you, but this seems like a risky venture considering Connecticut’s economy – along with the rest of the nation’s – hasn’t exactly experienced a full recovery.

The median price for single-family homes sold in Connecticut for 2010 was $250,000, a nearly 4 percent increase from 2009, according to The Warren Group, publisher of The Commercial Record. That’s a cool $200,000 less than the starting asking price for one of the Toll Brothers homes.

This is a big move in Connecticut housing and not just for the luxury market. According to Toll Brothers, these housing developments will be the state’s first in five years. Are people ready to embrace these lux homes’ two-story entryways; nine-foot, first-floor ceilings; hardward floors; granite countertops and luxury master-bedroom suites?

They just might be. The latest figures from foreclosure marketplace RealtyTrac indicate that Connecticut has some of the lowest foreclosure numbers in the nation. While those numbers may be low, we all probably know that they aren’t quite accurate due to last fall’s robo-signing debacle.

But I guess we’ll all have to just wait and see how many of these homes get scooped up and (fingers crossed) how many of these new homeowners stay on top of their mortgage payments.

Are homeowners who are in foreclosure or at risk of losing their homes increasingly filing for bankruptcy as a last ditch effort to save their homes?

The Warren Group recently reported that bankruptcy filings in Connecticut jumped 20 percent in the first half of the year compared to the same period in 2009. The increase in bankruptcy filings comes as foreclosures have jumped 37 percent statewide. There were 3,010 foreclosures in the first five months of the year compared to 2,191 during the same months last year, according to The Warren Group.

It doesn’t necessarily mean the two are tied together. After all, renters can file for bankruptcy protection too.

But filing for bankruptcy protection can temporarily halt the foreclosure process, and can also give homeowners some more money and time to catch up with missed mortgage payments. Attorneys often recommend it to clients who are desperate to save their homes. With a Chapter 7 filing, unsecured debt – like credit card bills – is dismissed. But consumers are still on the hook for mortgages, which are secured debt.

Filing for bankruptcy protection, can help a homeowner who has steady employment by reducing the number of bills they have to pay, ultimately freeing up cash for monthly mortgage payments.

With a Chapter 13 filing, a consumer can repair their finances and come up with a court-approved payment plan – usually over three to five years. In such a filing, a judge can eliminate second mortgages, such as home equity loans, if a home value has dipped below the first mortgage amount.

Has Connecticut’s luxury home market made a permanent comeback, or is the recent uptick just a temporary blip?

Sales of $1 million-plus single-family homes statewide have more than doubled in the first six months of this year compared to the same period in 2009, according to a new report by Commercial Record Staff Writer Colleen Sullivan. The report attributes the spike to more favorable rates for jumbo loans.

The super high-end has fared even better. Sales of homes with price tags of $3 million and higher have actually tripled, according to statistics from The Warren Group.

Are the lower jumbo rates the key factor, or is confidence in the housing market and the overall economy driving factors? Of course, the jump might seem so sharp because last year home sales in the high end were really dragging.

And should we expect to see an increase in the second half of the year?

If I built a new house for myself, I know what would automatically be on my wish list: a large, functional kitchen that’s easy to clean and fits my large family during holiday gatherings.

Not surprisingly, that’s what a lot of homebuyers seek. Large kitchens featuring islands tops the list of 10 must-have features in new homes, according to an annual survey of homebuyer preferences conducted by AVID Ratings Co. That’s followed by granite countertops, energy-efficient appliances and a home office/study.

You would expect to find those things on the list, but a few other features on the list, like “outdoor living room”, are questionable.

I’ve drooled over some spectacular outdoor living spaces, complete with state-of-the-art kitchens, fireplaces and even high-definition flat-screen televisions, on HGTV. Some of these spaces have been created with budgets of $80,000 or higher.

Of course they’re gorgeous, but I’ve always wondered how such spaces are maintained and protected by the elements. In New England, where we tend to have long, cold and wet winters, how would such an outdoor space stand up to harsh weather?  

Plus, in New England you’d be lucky if you could use the space two or three months out the year. I can’t see spending hundreds of thousands of dollars to use a space for only two months out of the year, or worse, seeing it destroyed after a brutal winter.

The other item on the “must-have” list is master suite soaker tubs. Sounds perfectly luxurious. But honestly, how many people have time to use the soaker tub? I’d take an oversize shower over the soaker tub any time.

What’s happening to homeowners who’ve sought a home loan modification through the federal Home Affordable Modification, or HAMP?

More than a third of the 1.24 million trial loan modifications made through May under the program have been canceled, according to federal authorities.

But the federal government claims that borrowers who end up with a canceled loan modification either end up with another loan modification or become current on their loans.

Even those who end up with loan modification under HAMP may still face trouble, according to a startling report released just a few days ago. Fitch Ratings predicts that most homeowners who’ve received a loan modification through HAMP will default within a year. The redefault rate within a year is likely to be 65 percent 75 percent under HAMP for loans that aren’t backed by the federal government, according to Fitch.

That’s tough news for many states, including Connecticut, which have seen foreclosure activity increase this year. Foreclosures have jumped 37 in the first four months of the year, compared to the same period in 2009, according to The Warren Group.

The only bright news, if you can call it that, is that the number of lis pendens filings by lenders to start foreclosure proceedings against property owners has remained relatively flat. There were 9,839 lis pendens flings from January through April, up about 1.7 percent from 9,669 a year ago.