This past July, nationwide cash sales on home purchases dropped for the 31st year-over-year monthly drop in a row.
According to CoreLogic, cash transactions slipped 0.5 percentage points on a month-to-month basis. Five states had the highest cash deals: Alabama with 47.4 percent, Florida with 44.7 percent, New York 42.8 percent, West Virginia 41.1 percent and New Jersey 39.5 percent.
Real estate owned properties accounted for 56 percent of all of the Florida cash home sales. 15.6% of all cash sales were of new homes, while cash deals for resales and short sales made up about 30.2 percent and 28 percent, respectively.
While the United States as a whole is seeing declines in all cash purchases in real estate, Florida is home to all five markets with the greatest percentage of July sales of all 100 major metro areas.
Washington is the area with lowest cash sales in the nation, with only 13.6% of sales being in all cash.
West Palm Beach-Boca Raton-Delray Beach, at 53.2 percent; Miami-Miami Beach-Kendall, at 52.2 percent; North Port-Sarasota-Bradenton, at 50.1 percent; Fort Lauderdale-Pompano Beach-Deerfield Beach, at 48.4 percent; and Cape Coral-Fort Myers, at 47.9 percent.
Cash sales have implications and benefits. Its best benefit is that it is quick and efficient. For this reason, paying cash makes a transaction easier.
In 2014, even buyers who would ordinarily finance their purchases are making all-cash offers to appear more attractive to sellers, said Daren Blomquist, vice president at RealtyTrac.
“If they have the ability to, homebuyers will put up cash bids just to jump to the front of the line,” he said.
In recent months, Florida saw increases of cash buying from foreign buyers, like from China and South America.
Florida and Miami in particular have healthy and growing real estate markets. Miami is a dynamic city that is attracting real estate buyers from all over the world. Check out all the city has to offer and the awesome properties RE/MAX cannot wait to show you!