Cash Sales: Twenty-Nine Percent of Residential Sales

The percentage of cash sales was 29 percent in June, compared to 28 percent in May, according to the latest REALTORS® Confidence Index.  The proportion of cash sales is substantially higher than the rate prior to the downturn of the housing market in 2008. The high preponderance of all-cash sales appears to be primarily due to stricter mortgage and underwriting standards as well as purchases by investors and second home buyers, who typically pay cash, have edged out buyers needing to secure a mortgage from a lender.

Comments
  1. “The high preponderance of all-cash sales appears to be primarily due to stricter mortgage and underwriting standards”

    Let me think about this one.

    FHA Loans
    1. 620 Fico
    2. 3.5% downpayment
    3. Verified income

    Does those 3 core requirements of FHA sound strict to you?

    Maybe the after tax/expensive incomes of Americans doesn’t allow them to buy a home because of the economic destruction that this last recession created. Maybe the fact that Americans lost 40% of the net wealth has something to do it.

    http://loganmohtashami.com/2012/03/30/diana-olick-just-a-few-questions-maam/

  2. Its not just Americans who want to buy with cash. The rush of foreign buyers picking up US property brings plenty of buyers with euros, pounds, reals and yuan. But handling all that cash can be tricky for a Realtor not used to international deals. This short blog can help minimize the anxiety of a foreign transaction – http://www.parcerealestatekeywest.com/post/What-Realtors-should-know-about-helping-foreign-buyers-who-want-to-buy-with. Good luck.