Cash buyers in the market
All-cash transactions are becoming the common way for investors to buy investment and vacation homes with roughly half of all investment buyers paying cash in 2011 and 42 percent of vacation home buyers paying cash. Dr. Yun points to tight credit conditions for the decline in owner-occupant purchases.
Half of all investment home purchases in 2011 were distressed homes, as were 39 percent of vacation homes. The median investment home price in 2011 was $100,000, up 6.4 percent over the year, while the median vacation home price was $121,300, down 19.1 percent.
“Clearly we’re looking at investors with financial resources who see real estate as a good investment and who aren’t hesitant to use cash,” Dr. Yun said.
Dr. Yun also pointed out that for investment and vacation home buyers that used mortgage financing, the median downpayment was 27 percent in 2011.
Posted on April 19, 2012, in Real Estate Stats and tagged Buyer, Investment, Investor, National Association of Realtors, Real estate, Real estate pricing, Vacation property. Bookmark the permalink. Leave a comment.