CASH IS KING

Dated: 10/22/2013

Views: 494

Home sales are rising, largely driven by low inventories, rising consumer expectations, and shrinking distressed inventory.  But wait, aren’t low interest rates the number one factor in increasing property sales?  New research fromGoldman Sachs indicates low rates may be slightly less important than many think.Many buyers are reaching into their pockets to purchase homes with cash.  Goldman Sachs estimates that between 1st quarter of last year and 1st quarter of this year, a whopping 57% of residential sales were all-cash transactions.  However, in a real estate market where the total number of deals is rising, this still leaves room for an increasing number of mortgages for home purchase.  According to just released Federal Reserve data for 2012, the number of loans made to people actually buying homes (as opposed to refinancing), increased by 13%, compared to 2011.  This represented a five year high. The Goldman Sachs’ analysis estimates that around 20% of all homes sold before the housing downturn were all-cash sales (approximately 30% of sales by dollar volume).  But over the past seven years, a flood of money into the housing market has resulted in the all-cash share of sales more than doubling.Whether your customers prefer to buy using a mortgage, or by paying all-cash, the good news is they’re buying!

Want to Advertise on this Site?

Latest Blog Posts

3 Tips For Making Your Dream Of Owning A Home A Reality

3 Tips for Making Your Dream of Owning a Home a Reality Some Highlights: Setting up an automatic savings plan that saves a small amount of every check is one of the best ways to save without

Read More

5 Ways Tax Reform Has Impacted The 2018 Housing Market

5 Ways Tax Reform Has Impacted the 2018 Housing MarketStarting late last year, some predicted that the 2018 tax changes would cripple the housing market. Headlines warned of the potential for double

Read More

Real Estate Tops Best Investment Poll For 5th Year Running

Real Estate Tops Best Investment Poll for 5th Year RunningEvery year, Gallup surveys Americans to determine their choice for the best long-term investment. Respondents are given a

Read More

Home Inspections What To Expect

Home Inspections: What to ExpectSo you made an offer, it was accepted, and now your next task is to have the home inspected prior to closing. Oftentimes, agents make your offer contingent on a

Read More