Cash purchases down as market normalizes

by Diana Aqra25 Jul 2013

The percentage of all-cash and institutional investor purchases was down in June from one year ago, according to a recent report.

Nationally, all-cash purchases amounted to 30% of all sales in June, down 31% from one year ago, while institutional investor purchases were down 10% during the same period, according to a recent report by RealtyTrac .

Those types of purchases increased in some states, however, according to the report. Cash sales increased in big cities in Florida like Cape Coral, Miami, Sarasota, and Tampa and Las Vegas in Nevada, and not surprisingly, in Detroit, Michigan.

Institutional investors bought up more properties in Georgia (23% of all sales), Nevada (16%), Arizona (15%), Oklahoma (13%), North Carolina (12%) and Florida (12%).

“The U.S. housing market is slowly but surely moving toward a more normalized and sustainable pattern after a flurry of institutional and cash buyers flocked to residential real estate last year, pushing up prices and picking clean the best inventory available in many areas,” said Daren Blomquist, vice president at RealtyTrac.

 

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