Real estate aggregator RealtyTrac has released new reports relating to investment property purchases. A few of the highlights are listed below:
- For the 1st quarter of 2014, all-cash sales peaked to their highest level since 2011.
- 42.7 percent of all home sales were all-cash transactions for the 1st quarter.
- That’s an increase of 23.6 percent when compared to the 1st quarter of 2013.
- Institutional investors (more than 10 properties purchased per calendar year) declined to 5.6 percent of all sales from 7 percent in 2013 (1st quarter).
Vice President of RealtyTrac, Daren Blomquist stated, “Strict lending standards combined with low inventory continue to give the advantage to investors and other cash buyers in this housing market. The good news is that as institutional investors pull back their purchasing in many markets across the country, there is still strong demand from other cash buyers – including individual investors, second-home buyers and even owner-occupant buyers – to fill the vacuum of demand left by institutional investors.”
Chief Economist at the National Association of Realtors Lawrence Yun recently announced that distressed sales fell to 15 percent in the 1st quarter. Compared to 2013, that is a 9 percent decrease. Distressed sales are very popular with all-cash buyers.
Another factor that many of the world’s leading real estate experts consider to be a contributing factor to the high levels of all-cash purchases is the increase in foreign buyers. Many high-end communities across the country are seeing an influx of foreign buyers making all-cash purchases.
For information about how this relates to the Sandbridge Beach real estate market email [email protected] or call Pat at (757) 478-8264.