+
Just about 38% of homes and condominiums purchased within the United States during the second quarter of 2014 were all-cash transactions. This was slightly lower than the previous quarters three-year high of 42% of transactions. It was also higher than the previous year.
Cash sales were also higher for both the lowest and priciest of properties. They made up for 2/3rd of purchases of homes selling for up $100K, as well as 45% of purchases of homes selling for more than 2 million dollars.
All Cash Sale Trends Between 2012 and 2014:
- Distressed home sales declined from 26% of the national market in 2012 to 17% in 2013 and 15% in the first quarter of this year; National Association of Realtors projects distressed homes to drop to a single-digit market share by the fourth quarter. All-cash purchases rose from 29% in 2012 to 31% in 2013 and 33% in the first quarter of 2014.
- In Florida more than half of all homes were purchased with cash. High levels of all-cash sales also were recorded in Nevada, Arizona and West Virginia, accounting for close to four out of 10 transactions.
- The findings, derived from a survey of about 3,000 responses each month for NAR's Realtors Confidence Index, also show investors edged down from 20% of buyers in 2012 to 19% in both 2013 and the first quarter of this year.
- A separate annual study of consumers, NAR's 2014 Investment and Vacation Home Buyers Survey, shows investors at a somewhat higher market share, but declining more sharply from 24% in 2012 to 20% in 2013.
These findings beg the question as to why we're seeing higher shares of cash purchases. The restrictive mortgage lending standards are a factor, but the higher levels of cash sales may also come from the aging of the baby boom generation, with more trade-down and retirement buyers paying cash with decades of equity accumulation.
A majority of foreign buyers are paying cash as well, and the five-year bull run of the stock market has also provided financial wherewithal among higher wealth households. In Florida, where more than half of buyers paid cash in 2012 and 2013, distressed home sales declined from nearly four in 10 purchases in 2012 to three in 10 during 2013, and investors edged down.
Top 10 Cities Where Homebuyers Paid Cash:
10. Las Vegas, Nevada more than 50% of all property sales were all cash in the Las Vegas-Paradise metro area.
9. Palm Bay, Florida came in with 50.7% of all property sales were paid with cash, 11% were shortsales.
8. Jacksonville, Fla. saw cash sales totaling 51%. Investors bought 12.5% of all homes in the 2nd Qtr of 2014
7. McAllen-Edinburg-Mission, Texas had 52% of home sales being paid by cash. 10.2 higher than last year.
6. Orlando-Kissimmee, Florida saw 52.2% cash buyers which was slightly lower than the previous quarter.
5. Lakeland Florida had 53% of all home sales paid with cash, 5.8% were investors.
4. Tampa-St. Petersburg-Clearwater, Fla had 54% and 7% were investor purchases.
3. Sarasota-Bradenton-Venice, Fla had a high of 61.5% up 7% from the previous year.
2. Cape Coral-Fort Meyers, Fla saw 62.1%, however the city is showing signs of a recovery, prices rose 20%.
1. Miami-Fort Lauderdale, Florida had a high of 64.1 cash. More than any other city in the nation.
Please contact me Rory Mark Schmer CEO & Founder of SouthFloridaHomeSale.Com
My promise to you and your family:
- Loyalty
- Skill, Care & Diligence in all areas
- Confidentiality
- Accounting for all funds
- Instant Gratification
- Patience
- Disclosing all known that materially affect the value of residential real property and are not readily available.
I have surrounded myself with the best associates in the business. We have attorneys on staff and should you need mortgage assistance our lenders are incredible.
I look forward to hearing from you. Check out our site she's loaded with information and content. I know you will appreciate her.
No comments:
Post a Comment
We look forward to your comments.