More than half of all homes sold in 2012 & so far in 2013 have been done with cash. That’s an amazing statistic when you consider that percentage was only 20% before the housing downturn. Many of these are investors buying up the distressed properties in the hardest hit areas of the US like Florida, California and Nevada. Even considering that it still seems like a huge increase in cash buyers especially when you consider how low interest rates have been in the past year.
Every day I see bank owned properties in the area being bought up for cash and I have seen an increase in foreign investors as well. However, when I pull up recent sales for homes in the $200,000-$500,000 price range in our area I’ve noticed a lot of cash sales of homes that are not distressed sales. There’s no way of knowing who these cash buyers are but I would guess after the economic downturn many people began saving more and now they need a place to put their cash. It could be more Americans are looking for the peace of mind that comes with living in a home without a mortgage.
Click here for the article in the Wall Street Journal.