You’ve always heard “Cash is King” and now it’s time to realize that it’s literally running the show in the real estate markets nationwide. Real estate sales associates and brokers all over are finding themselves with their qualified buyers (financing) competing with cash buyers ALL THE TIME, and in all price ranges. Some cities like Orlando and Miami, FL are seeing over 60% of transactions closing cash.
Cash buyers are snapping up homes in markets nationwide, betting that deals won’t get much better.
Last month, all-cash buyers accounted for 30% of existing home sales, up from 25% in May 2010, and 12% two years ago, says the National Association of Realtors.
Cash buyers, who are mostly investors, accounted for at least 30% of existing-home sales for the fifth-straight month, the association says. They hit 35% of buyers in March.
The cash buyers are enticed by low prices and potential rental income, economists say. But while their activity has helped curb price drops, price increases have yet to follow.