Forty percent of homebuyers in July paid cash for their homes, according to a recent RealtyTrac national report. http//http://www.dssnews.com/articles/rising-rates-prompting-action...www.dsnews
Despite the current slowdown in home sales the past few months, attributed to the rise of mortgage interest rates, cash buyer numbers are increasing. RealtyTrac VP, Daren Blomquist, stated that rising mortgage interest rates are forcing many potential homebuyers out of the market because “some non-cash buyers can no longer afford to buy, particularly in high-priced markets.” The July increase of cash buyers showed a 5 percent increase over June and 31 percent higher than in July 2012.
Dallas leads in percentage of cash sales
Dallas led the nation in the increased number of cash buyers in July, 82 percent, followed by St. Louis with 60 percent, Los Angeles at 32 percent, and Riverside-San Bernardino, California with 26 percent.
Although there have been larger increases of cash buyers, however, the occurrences of short sales nationwide, rising from 13 percent to 14 percent of national sales the pat few months compared to 13 percent last July.
The study also found that regardless of the national sales increase, however, eight states: California, Alabama, Arizona, Nevada, Georgia, New York, Hawaii, and Oregon experienced declines in sales volume. Interestingly, four of these states, including California, were the states that had the highest median home prices. The others were Nevada, Arizona, and Georgia, ranging from 20 to 27 percent.
California is first in metro sales declines
The biggest delines in nationwide metro area sales were in California, with San Francisco down 20 percent, , Los Angeles (-20 percent, San Diego (-19 percent), and Riverside – San Bernardino (-14 percent).