Cash deals are easier to close because there is no need to get involved with the rigours of bank financing-- appraisals, downpayments, qualifications, etc. However, due to the less risk of closing, generally means the prices offered are a bit lower than market. A recent report in Fortune Magazine, said the average "haircut" off the home is 10% for cash.
Foreign investors are making their way to the US market who are betting on both a recovery in the housing market as well as a strengthening US Dollar. They would get a boost from the apprecation in the home value and the currency translation when they sold and reverted back to the home country currency.
All cash purchases were about 13% of all transactions in the US during 2007, according to DataQuick; this is considered a more normal period of sales. Cash sales were about 33.2% of nationwide sales in December 2011, according to DataQuick.
We also know distressed sales (i.e., short sales and foreclosures) are increasingly becoming a large part of overall sales. Foreclosures are dampening the sales comparisons and are forcing listing prices down in order to compete with the others in the inventory pool.
The overhang of new foreclosures and the sluggish US recovery are reasons I believe the US housing market will not show price appreciaiton in 2012. The market is favorable to buyers of homes, especially cash buyers. Please contact me for your buying, selling and renting needs.
As a local Relator, I am aware of the trends in the US market as well as in many of the communities in which I specialize. If you are thinking of selling or buying a home, please feel free text me or call me at 561-247-3550.
For free home searches, please text me your name, e-mail address and phone number or visit my Web-site at http://homes.MYsouthFLrealestate.com
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Member of Who's Who in Luxury Real Estate
Lang Realty
561-247-3550
http://MYsouthFLrealestate.com
Referrals are appreciated and welcomed.
Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty
Showing posts with label foreign investors. Show all posts
Showing posts with label foreign investors. Show all posts
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