Is Anyone Paying All Cash to Buy Homes in This Economy?
Nationally, 28% of sales were all-cash transactions last year, according to the National Association of Realtors. The rate was 14% in October 2008, when the trade group began tracking the measure.
The jump in real-estate purchases made with cash is another sign of the revival of animal spirits in the U.S. economy.The percentage of buyers in Phoenix paying cash hit 42% in 2010, and 50% of transactions closed in Miami were for all cash.
One investor is purchasing three properties for all cash, and these are not the lower end priced properties. All three were over one million dollars. Apparently he believes the market has bottomed.
In many instances people making cash offers to buy a home, will get a better discount due to the fact loan qualifications is not an issue. As a Realtor, I also like working with buyers who make cash offers, as these properties will close faster, again because there are no lenders involved.
While the media constantly bombards us with how depressed the housing market and economy is, there is encouragement that there are many people who are doing quite well and have money to invest in real estate.
Filed under: Market Data
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