Speculation in homes is also largely local, especially for owner-occupied residences. For homeowners to realize accumulated capital gains on a residence--a precondition of a speculative market--they must move. Another formidable barrier to speculative activity is that home sales involve significant commissions, taxes, points, and other fees, which average in  3/5  the neighborhood of 9 percent of the sales price.
Where sales by owner-occupants predominate, speculative turnover of homes is difficult. But in recent years, the pace of turnover of existing homes has quickened. Apparently, a substantial part of the acceleration in turnover reflects the purchase of second homes-mainly for investment or vacation purposes.