ALL-CASH SALES ‘SUBSIDING’

This is GOOD news and BAD news!  Sales hit their lowest prices in the U. S. in March 2012, then the flurry of purchases by institutional investors & other cash buyers kicked off 2 years of buying & is now tapering off.  GOOD news is fewer cash buyers should help loosen up the inventory of homes for sale & reduce competitive bidding, giving non cash  & 1st time homebuyers a better chance.  The BAD news is that some non cash buyers & lst time buyers may be already priced out of the market as prices in the U. S. have increased in the past 2 years.  Daren Blomquist, RealtyTrac vice president noted 2nd quarter 2014 all-cash sales accounted for 37.9% of single-family homes & condos & down from 42% the previous quarter, but up from 35.7% a year ago.  As we say at Bain Real Estate it is always what BUYERS WILL PAY AND WHAT SELLERS WILL SEE FOR, that governs the market