Cash sales at highest level since 2013
The percentage of cash sales of US homes has risen to the highest level since 2013 according to RealtyTrac data. In November 2015 38.1 per cent of sales of single-family homes and condos were cash transactions, up from 29.8 per cent in October and 30.9 per cent in November 2014. In March 2013 the proportion of cash sales was 38.8 per cent but the increase in November was the first for 29 months.
“The jump in cash sales is likely a knee-jerk reaction to the new documentation and disclosure rules for mortgages that took effect in October, making it even more difficult for buyers using financing to compete with cash buyers in the already competitive housing market,” said Daren Blomquist, vice president at RealtyTrac. “Global economic instability may also be driving more foreign cash buyers back to the relative safety of U.S. real estate.”
San Francisco saw the largest jump in cash buyers (89 per cent) followed by San Jose, CA and Columbus, OH. Miami had the highest share of cash sales (54.8 per cent) followed by New Orleans and Oklahoma City.
Real estate entrepreneur selling Newport Coast mansion
Commercial property entrepreneur Manny Khoshbin has listed his home on California’s Newport Coast for $9.975 million. The OC Register reports that Khosbin, whose company specializes in buys and repositions commercial property in distressed markets, is selling the 10,365 square foot home with four bedrooms, massage room and poker parlor at a reduced asking price having previously sought $11 million and then $10.7 million. The listing agents are Payman Paul Daftarian and Lili Daftarian of KR Homes.
Denver lawmakers to consider construction-defect law
With the new legislative session starting Wednesday Denver lawmakers will be asked to consider introducing legislation to help homeowners claim against builders for defects in their properties. While some municipalities in Colorado have acted to stop homeowners from suing builders, in a bid to persuade developers to build more condos, the Denver Post reports that the measures have not had the desired effect.
Proponents of restricting homeowners’ rights to sue believe that strong statewide legislation could bring developers back but opponents want to see changes which would mean arbitration being the preferred option rather than litigation. A bill proposing that change was rejected last year but will be tabled again in the new session.