65% of Sarasota Homes Purchased with Cash (Miami, Cape Coral: sales, real estate, 2014)

[beninfl]

All-cash deals account for nearly half of all home sales - May. 8, 2014

Once riddled with foreclosures, Cape Coral, Fla., had the highest level of all-cash deals at nearly 74% of first quarter sales, according to RealtyTrac. Four other Florida cities followed: Miami (67%), Sarasota (65%), Palm Bay (64%) and Lakeland (62%).




What does this mean? I dont know.

[bbronston]

The article mentions investors but I think it is, in large part, people up north who are either relocating, or buying a second home for themselves, with proceeds from the sale of their property up there or with savings that they will replace following a sale that is coming soon. It may also be a reflection on the nonsense going on with lenders. I recently heard about a borrower who would otherwise qualify in all respects for a loan but who was rejected because the lender decided the property was too far from the borrower's workplace!

[CSRSJim]

It could be retired people moving, but I would think cash sales are also a sign of foreclosure sales being bought by investors as the article states. Put both of those factors together, and you get a high percentage of cash purchases.

[La-La land]

I know up here in Canada, you can't get a loan on US property, at least through traditional banks. It's all equity financing, which translates into a cash sale down there.

[calico777]

Wowser, the market 'up north' must be rockin' when they get so much out of it to buy in Sarasota.
The Herald Tribune had an article of a Siesta Key property, that was snatched by an investment company, they listed it for about 200k more shortly after...not sold yet...but I'm wondering if there are more of such companies....

[Cardiff by the Sea]

Originally Posted by calico777

Wowser, the market 'up north' must be rockin' when they get so much out of it to buy in Sarasota.
The Herald Tribune had an article of a Siesta Key property, that was snatched by an investment company, they listed it for about 200k more shortly after...not sold yet...but I'm wondering if there are more of such companies....

Homes that people have lived in for 25 years have a lot of equity.

[jmqueen]

Originally Posted by bbronston

The article mentions investors but I think it is, in large part, people up north who are either relocating, or buying a second home for themselves, with proceeds from the sale of their property up there or with savings that they will replace following a sale that is coming soon. It may also be a reflection on the nonsense going on with lenders. I recently heard about a borrower who would otherwise qualify in all respects for a loan but who was rejected because the lender decided the property was too far from the borrower's workplace!

My buyer was turned down for the same reason. He planned to transfer (18 years with Starbucks, currently a manager) to CT from NJ, but didn't want to commit to the transfer until he got his house here. So they turned him down because of the commute he was prepared to make for a few weeks after he bought the house while he waited for his transfer to go through.

Thankfully he went to a different broker and was approved immediately.

[jsup]

In my case and probably many others, stock investments are up 50% or more over the last 2 years. Taking some of the gain and diversifying into Fla real estate.

[dcp528]

Originally Posted by jsup

In my case and probably many others, stock investments are up 50% or more over the last 2 years. Taking some of the gain and diversifying into Fla real estate.

The above and also having some equity in their homes after paying off the mortgage when selling their residence.

[TamRE]

I have a very large percent of cash buyers and they are not investors, they are snow birds.