Cash Purchases Decline

Green Escrow | Real Estate News

According to RealtyTrac’s® U.S. Home & Foreclosure Sales Report, 24.6 percent of all single family home and condo sales in May 2015 were all-cash purchases, down from 28.5 percent in April and down from 30.4 percent in May 2014. In fact, the
24.6 percent rate represented lowest level since November 2009. The recent peak was 42.2 percent in February 2011.

Moreover, the share of institutional investors – those entities purchasing at least 10 properties in a calendar year – declined to to 2.4 percent in May, the lowest mark since January 2000.

This, of course, is good news for the first-time buyer who now face a bit less competition.

All Cash and Contingency-Free Buying Second Biggest Surprise of 2014

Green Escrow | Real Estate News

As outlined previously, the lack of inventory was the biggest surprise of 2014 according to a small group of realtors recently polled by the San Francisco Chronicle. Digging a bit deeper into their responses, it becomes clear that the increase in “all cash” buyers and the subsequent response by buyers relying on mortgage financing to make “contingency free” offers (i.e. no inspections, appraisals etc.) also was a major surprise.

It was also pointed out that living in such a high tech mecca has afforded the opportunity for many to become wealthy overnight as companies are sold or venture capitalists pour in an incredible amount of money.

Finally, experts expect interest rates to rise in 2015 so if you’ve been considering refinancing – do it now!