If you want to buy a house in Nevada you better bring cash

In June, 58% of the sales in the state were made in all-cash, according to a report by RealtyTrac.


But it’s not just Nevada.  All-cash deals in Florida comprised 57% of home sales during the month; in the state of New York, it was 51%, and in Vermont, a whopping 80%.

In markets like these, lingering foreclosures and depressed home prices are attracting private equity firms and other investors looking to buy before home prices go much higher, RealtyTrac said.

In other markets, where there are fewer distressed properties, the all-cash deals are a lot less prevalent.  Nationwide, cash deals comprised 30% of home sales in June, down from 31% a year earlier, RealtyTrac reported.  But in states like Texas, Utah and New Mexico, such deals were practically non-existent.

Hit hard by foreclosures when the housing bubble burst, Phoenix was one of the first places investors flocked to.  A year ago, 25% of all homes sold went to deep-pocketed investors.  In June, that percentage dropped to 13% as most of the low-priced, prime properties had already been sold.

With fewer opportunities in her hometown, she has been buying and flipping in Orlando, where 53% of sales were all-cash deals last month, according to RealtyTrac.  Other Florida metros ranked even higher for cash sales.  In Miami, 64% of deals were done in cash and in Tampa, 58%.

A larger share of the deals in Florida, however, are going to individual buyers, according to Blomquist.  Retirees come to the state looking to buy with the proceeds from the sale of their former home or cash from their retirement funds.  There’s also a huge cash-rich international contingent, especially in Miami.

Source: CNN Money

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s