The chart above comes form the RealtyTrac Residential & Foreclosure Sales Report. It should come as no surprise that as rates rise, so too do all-cash purchases.
There are a few significant factors worth noting:
1) Last year, institutional investor purchases for residential properties (single family homes, condominiums and townhomes) accounted for 7.3 percent of all U.S. residential property purchases. This is up from 5.8 percent from in 2012 and 5.1 percent in 2011.
2) Median price of a distressed residential property — in foreclosure or bank-owned — was 38 percent below non-distressed property median ($108,494 versus $174,401) in December.
3) Bank-owned properties (REO) accounted for 9.3 percent of all U.S. residential sales last month, essentially unchanged from a year earlier (9.2 percent in December 2012).
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.
One Response to “Cash Purchases Spike as Interest Rates Rise”
Leave a Reply
You must be logged in to post a comment.