An analysis of data from the latest Realtors Confidence index has revealed that, despite declines in investor activity and distressed sales, all-cash purchases are on the rise! When you think about what this statements, it actually seems backwards.
Most would think that all-cash purchases are more common in the sale of distressed homes in which investors can pay in cash. So the idea that cash purchases are up while distressed home sales are down is surprising.
Even more surprising is that all-cash purchases have increased even though investor activity is down. If investors, who typically have the resources to pay entirely in cash, aren’t the ones causing the increase in all-cash purchases, then who is?
Florida Rakes in the Cash
Though high levels of all-cash sales have been recorded in Nevada, Arizona, and West Virginia, the state of Florida is leading the way with over half of all homes being purchased with cash. This is in spite of the decline in distressed home sales from 40% to 30% during 2013.
So what is causing the high rate of all cash sales in Florida? There are three factors we should consider:
- Florida holds the most appeal for international buyers, who generally pay cash
- Vacation-home buyers (who we all know love Florida) also tend to pay cash for a second home
- Downsizing retirees often choose to move to Florida for the weather and lifestyle. Many times, they are purchasing with the proceeds from selling their home in more northern states.
So What Does This Mean for Sarasota Buyers and Sellers?
Basically, the current market situation is looking quite favorable for those looking to sell Sarasota real estate. Just think – wouldn’t it be nice to sell your home in an all-cash transaction? Imagine the simplicity and profitability in an all-cash transaction. If you are ready to see what possibilities are out there for your home, contact us today and list your home with our team of Sarasota real estate experts.