Cash Sales Jump to 45 percent in August
Jann Swanson | Mortgage News Daily | Sep 26 2013 | link
Distressed homes accounted for 25 percent of residential home sales in August, up 2 percentage points from July. RealtyTrac, in its August U.S. Residential and Foreclosure Sales Report, said that short sales and sales of bank-owned properties (REO) each rose one point from their July numbers to 15 percent and 10 percent respectively.
The big news, however, was the growing level of all-cash sales which are rapidly approaching half of all residential real estate transactions. Those sales rose to a 45 percent share in August, up from 39 percent in July and 30 percent in August 2012. The percentage of cash sales was even higher in some metropolitan areas such as Miami (69 percent), Detroit (68 percent), Las Vegas (66 percent), Jacksonville, Florida (65 percent), and Tampa (64 percent).
The numbers of institutional investors, those who have purchased at least 10 properties in the last 12 months, are also increasing and accounted for 10 percent of all sales in August compared to 9 percent both in July and one year earlier. Memphis, Jacksonville, and Atlanta appear particularly attractive to these large investors with those purchases representing respectively 31, 29, and 22 percent of local sales.
RealtyTrac said homes (including single-family residences, condos, and townhomes) sold at a seasonally adjusted annual rate of 5.6 million in August, up 2 percent from 5.5 million in July and 12 percent higher than the 5.0 million pace in August 2012.