ALL-CASH Buyers Scooping Up SE Florida Real Estate Deals

I have written many posts on foreclosures and guidelines/ tips on how to successfully buy foreclosed properties and being an “ALL-CASH” buyer, has always been on top of the list. 

Cash buyers get the “real deals” in SE Florida Real Estate. Reports show that 63% of all closed transactions in the first quarter for Dade and Broward counties were all cash purchases.

The lowest price ranges for Dade and Broward, are for the most part foreclosed properties. And, not only do they go to “all-cash” buyers, but there are bidding wars.

Now, we finally have statistical data that speaks in a more convincing voice; see some of the published details below, showing clearly that Miami- Fort Lauderdale, SE Florida, is leading with 63% of all sales in the first quarter being cash purchases. What is different for this local market is that significant number of these cash buyers is made of foreign purchasers, not just investors as in the other markets.

Here are some figures from the major areas affected by foreclosures:

“WASHINGTON – June 22, 2011 – Cash buyers are snapping up homes in markets nationwide, betting that deals won’t get much better. Last month, all-cash buyers accounted for 30 percent of existing home sales, up from 25 percent in May 2010, and 12 percent two years ago”, says the National Association of Realtors.

The cash buyers are enticed by low prices and potential rental income, economists say. But while their activity has helped curb price drops, price increases have yet to follow.

In the Miami-Fort Lauderdale area, 63 percent of first-quarter buyers paid in cash, vs. 39 percent in 1997’s first quarter, Zillow says.

Phoenix is also seeing more cash buyers, 44 percent in the first quarter up from 25 percent in the same 1997 period, Zillow data show.

The big numbers are “positive news,” says Stan Humphries, Zillow chief economist. “These are people who’re getting back into the market because they see good value.”

Cash buyers are especially prevalent in markets where prices have fallen the most, often areas hard hit by foreclosures.

In Las Vegas, the foreclosure capitol of the U.S. for the past four years, cash buyers accounted for 49 percent of first-quarter sales, says data from real estate site Zillow.com.

Given low prices, they can buy homes, rent them and be immediately cash-flow positive, says Paul Dales, an economist for Capital Economics.

To read full article published by FAR (Florida Association of Realtors):

http://www.floridarealtors.org/NewsAndEvents/article.cfm?p=3&id=261436

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