Source: RealtyTrac

 

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).

Category: Credit, Fixed Income/Interest Rates, Real Estate

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”

  1. lucas says:

    For comparison, what are the numbers for the those “three significant factors” during “normal” times, when housing is stable, not in the media-fed misnamed crisis or recovery? I mean what would the chart look like if it started in say, 1990?

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