Fewer Home Buyers Pay All-Cash
Realty Trac Staff | July 6, 2015
The share of home buyers using all-cash to pay for their real estate transactions dropped to the lowest level since November 2009, according to a new report by RealtyTrac. Nearly 25 percent of all single-family home and condo sales in May were all-cash purchases, down from 30 percent a year ago.
Read more: Cash Sales are Weakening
The percentage of cash sales is nearing a long-term average that goes back to January 2000 of 24.8 percent. Cash sales are also well-below the peak of 42.2 percent reached in February 2011.
The share of institutional investors -- those who purchase at least 10 properties in a year and who often pay all-cash -- is plunging.
As such, housing markets are transitioning from an "investor-driven, cash-is-king market to one more dependent on traditional buyers," says Daren Blomquist, vice president at RealtyTrac.
The top five metro areas with the highest share of cash buyers (and a population of at least 200,000) are all located in Florida. They are: Naples-Marco Island (56%); Sarasaota-Bradenton (54%); Miami (53.4%); Ocala (49.9%); and Cape Coral-Fort Myers (49.7%).
Source: Realty Trac