“CASH” Home Purchases Down To Levels Not Seen Since November 2009

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RealtyTrac, the premier source in USA for comprehensive housing data has recently released its Home Foreclosure Sales report for the month of May 2015. According to the report, about 24.6 of the sales for nuclear family homes and condominiums in May 2015 were full cash purchases. There has been a drop of 3.9 in all-cash purchases since last month. Back in 2009, during the month of November, the figure was quite high, i.e. around 30.4, thus it is quite evident that the “Cash” home purchases down to levels not seen since November 2009.

This is not necessarily a bad thing for potential home buyers according to the COO at Chase International Brokerage, Mr. Craig King. According to King, it is a good time for prospective buyers because the interest rates are historically low and there is a good outlook for price appreciation. King further points out that the competition currently prevailing in the market is also quite different since cash deals are not as prevalent as they once were. Thus, a lot of investors have exited the market as the inventory is tight and there has been a lot of equalization in multi-offer situations. All these factors are proving to be great news for those who are looking to purchase houses for the first time!

According to the report, the US median sales price of distressed as well as non-distressed residential properties sold in the month of May 2015 had gone up by 4. However, in comparison to last year’s statistics, it has reduced by 1. A number of non-distressed sellers are cashing out on the equity gained over a period of the last three years owing to the rising prices of the residential properties. Thus, the percentage of distressed sales is quite negligible as far as the total percentage of home sales is concerned.

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