With real estate prices continuing to drop, cash is king. Nationwide cash buyers are purchasing homes at a record rate. In May, all-cash buyers accounted for 30% of existing home sales, which is up from 25% in May 2010 and 12% two years ago.
Economists believe that the cash buyers are lured by the low prices and potential rental income. Sure, cash buyers have helped slow the price drops, but price increases have yet to follow. Cash buyers have realized that now is the smartest time to buy. Without the cash buyers, the real estate market would be in a much worse position.
The cash buyers are most prevalent in the areas that have been hardest hit by the recession and with large numbers of foreclosures. In Miami-Dade and Broward County 63% of first quarter buyers paid in cash compared to 39% in 1997’s first quarter. Phoenix and Las Vegas are also seeing these similar figures despite the daunting number of foreclosures they are experiencing.
These numbers are good news because it shows that people are getting back into the market. Cash buyers also often get better deals because sellers know that a deal won’t fall through due to a lack of financing. A 5% discount is the norm.
Buyers, and especially cash buyers, have many wonderful investment opportunities available to them. Indeed, buyers continue to find bargains by purchasing foreclosed homes in record numbers. As a seller, it is all the more reason to make sure your that your property is in the best possible condition.
Given the historically low interest rates, coupled with the low prices for many properties, especially foreclosed properties, the timing may never be better to purchase a new a property. Our firm can certainly assist you in your real estate needs should you be interested in purchasing, or selling, your property.
Often, an attorney is needed to navigate these troubled waters. We currently represent lenders, borrowers, buyers, sellers, and developers.
This broad array of experience allows us to effectively take a multi-faceted approach to our clients’ legal issues. No matter what you or your business’s needs may be when it comes to real estate, don’t hesitate to contact Alvarez & Barbara, LLP today.
Consider Your Options. Contact Us Today.
We are certainly in difficult times. Not only can a foreclosure be daunting, it can break an individual’s spirit. However, there are solutions, and alternatives, to foreclosures. At Alvarez & Barbara, LLP, we understand all of our client’s individual needs and pride ourselves in providing high quality service. If you’re facing a foreclosure, don’t let it bring you down. Call us today so we can show you that the saying “every problem has a solution” is an undeniable truth.
Call us toll free at 1-866-518-2913 or at 305-263-7700.
About the Author – Gabriel de las Salas is an attorney with the law firm of Alvarez & Barbara, LLP. His practice is focused on general civil and commercial litigation, including personal injury, insurance claims and real estate disputes. Mr. de las Salas received his B.A., cum laude, from the University of Florida, and his J.D., from Stetson University College of Law.