The Homa Files

Punch line: USA Today reports that “cash buyers are kings in weak home-sales market.”

* * * * *

According to the National Association of Realtors, in May 2011, all-cash buyers, who are mostly investors, accounted for 30% of existing home sales, up from 12% two years ago.

The cash buyers are enticed by low prices and potential rental income.

Cash buyers are especially prevalent in markets where prices have fallen the most, often areas hard hit by foreclosures.

• In Las Vegas, the foreclosure capitol of the U.S. for the past four years, cash buyers accounted for 49% of first-quarter sales
• In the Miami-Fort Lauderdale area, 63% of first-quarter buyers paid in cash.
• In Phoenix,  44% are cash buyers.

Cash buyers often get better deals because sellers know their offers won’t fall through for lack of financing. A 5% cash discount is typical.

Source: USA Today

* * * * *

This entry was posted on July 5, 2011 at 6:40 am and is filed under Housing - Mortgages. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.