Article in the RealtorMag stating Low Inventory Spurs More All Cash Offers in most of the markets…
While the volume of all-cash transactions is moderating, places with low inventory levels appear to be some of the most competitive markets for home buyers up against all-cash offers from investors, according to a newly released report by the real estate brokerage ZipRealty. The brokerage analyzed all ZipRealty transactions from January 2012 through December 2013.
“Low inventory is making cash offers on houses mandatory in some markets for buyers,” says Van Davis, president of brokerage operations for ZipRealty. “Many agents have told us anecdotally that some buyers may arrange post-close financing, which do not show as financed deal on the contract for purchase… Investors backed by institutions have the financial wherewithal to write a check for a home, unlike some consumers right now. And these investors are still active in a quite a few metro areas across the country.”
The metros with the most real estate purchased with all-cash in 2013, according to the ZipRealty report, are:
- In Las Vegas, 48% of sales there were all-cash in 2013
- Orlando: 43%
- Chicago: 33%
- Richmond, Va.: 32%
- Los Angeles: 29%
Still, the ZipRealty report suggests that all-cash sales nationwide may be showing signs of slipping. Its report showed that one in every four real estate transactions closed by ZipRealty agents was without financing, according to the report.
“Upon first glance, it may seem high that a quarter of all ZipRealty home sales closed without financing in 2012 and 2013,” says ZipRealty CEO and President Lanny Baker. “But based on our own internal analysis and data from the National Association of REALTORS®, the percentage of all-cash real estate transactions may actually be moderating.”
source: daily real estate news, ziprealty, realtormag