- 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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