Percentage Of “Cash Buyers” For Existing Homes Has Doubled To 33% Latest Statistics Show As Investors Close Deals; FHA 203k Renovation Financing Can Increase Ability Of Homebuyers Looking To Purchase “Distressed” Properties

29 03 2011

 

  • A record 33 percent of existing-home sales were made to cash buyers in February 2011
  • An annualized rate of 4.88 million properties are projected  for 2011
  • Only 15 percent of the 4.82 million annualized sales in 2008 were cash sales
  • 50% of all purchases were cash in Miami, Las Vegas and Phoenix areas
  • Prices have plunged in those areas and bank-owned properties dominate the market because of high foreclosure rates
  • Cash buyers paid an average 36 percent less than distressed properties bought with a mortgage
  • Investors buy houses at a discount with cash and then flip them to first-time homebuyers using a mortgage
  • Lenders reject mortgage applications for foreclosed properties because the homes lack utilities  and are in poor condition
  • Empty nesters, or couples with children who have gone out on their own, often pay cash when they move to a smaller house

For more:  http://www.telegram.com/article/20110329/NEWS/110329661/1002/business

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