Cash sales reach 62 per cent for low-value homes
Homes in the lowest 20 per cent of market value are more likely to be bought for cash according to mortgage data firm Black Knight Financial.
Its Mortgage Monitor Report found that 62 per cent of lower value homes were purchased for cash while in the top 20 per cent of market value the proportion was 30 per cent.
Black Knight Data & Analytics Senior Vice President Ben Graboske said that although the proportion of cash sales of lower-value homes was down from 75 per cent at its peak, 62 per cent is still high historically, and puts it down to two main factors.
“First, negative equity is still higher than average among this segment of the market, resulting in increased distressed discounts for buyers. Second, lower-priced homes simply require less capital to purchase outright, making cash sales possible for more people.”
Among other findings of the report: Mortgaged properties listed for sale are down 22 per cent from 2012 but up 10 per cent among those current on loans; and borrowers with low fixed interest rates less likely to list homes for sale while ARM borrowers are 72 per cent more likely to list than those with fixed rates.
Washington buyers camp out for condos
Potential home buyers in one Washington state county are desperate to buy a home as prices soar. The Seattle Times reports that in King County, buyers were camping out at the weekend in the hope of securing new condos which won’t be ready until 2019.
Prices in the county are rising fast. New data from Northwest MLS shows a record high median price for a single-family home of $560,000 in May, the fourth month of record prices. It’s a rise of more than 16 per cent in a year and 55 per cent in the past 4 years.
In line with many areas across the US, supply is a major factor with inventory for King County down 20 per cent in the past year.
Playboy Mansion is under contract
Hugh Hefner’s (in)famous Playboy Mansion is under contract for an undisclosed sum. The Wall Street Journal says that the buyer is Daren Metropoulos, son of billionaire investor C. Dean Metropoulos; who already owns an adjacent property.
The 29-room mansion set on 5 acres is being acquired by Metropoulos to “preserve its architectural heritage” according to a statement. However, its celebrity status and lavish parties are not set to end. The deal allows the 90-year old Hef to continue as a tenant for life.