Cash purchases are up significantly, with several of the country's largest metro areas showing double-digit increases
Cash purchases are up significantly, with several of the country's largest metro areas showing double-digit increases.
New data from RealtyTrac has shown all-cash purchases rose in July, accounting for 40% of all sales of residential property nationwide. That's up from 35% in June, and 31% in July of last year.
Several of the nation's biggest metro areas saw double-digit month-over-month increases in all-cash purchases. Phoenix and Seattle each saw a 21% rise, while cash purchases in Riverside-San Bernadino were up 26%. Cash purchases rose by 32% in Los Angeles, 66% in St. Louis and a whopping 82% in Dallas.
Across the board, sales volumes were up, rising 4% month-on-month and 11% from a year ago. The increase is the largest annual rise in sales volume this year. But sales volumes were down in states that have seen the biggest annual increases in median home prices, such as Calif., Ariz., Nev., and Ga.
"Low inventory of homes available for sale is proving to be a double-edged sword in many local housing markets that have bounced back quickly from the real estate slump," said Daren Blomquist, vice president at RealtyTrac. "Home prices are accelerating rapidly in these markets thanks to the combination of low supply and strong demand. However, counter to the national trend, sales volume in these markets is down even as the percentage of cash sales rises, indicating there is still strong demand but that buyers who need financing to purchase are increasingly left out in the cold."
