Cash is King!

Cash closings are very hot in the Triangle real estate market!  Currently cash sales are up 10% from 2009 and 2010 and a whooping 19% from 2008.  

Who are these cash buyers and what type homes are they purchasing?  From my experience these buyers are investors looking to diversify and to "cash in" on the current bargains in the real estate market.  These buyers are also parents offering the financing for their young adult's children's first property.  There are also those who are looking to downsize.  The types of homes being purchased are actually all types,  Condos, Townhouses, and detached homes, but the price range average ytd is $178K.  

What does the number of cash sales say about the market?  Stacey Anfindsen, appraiser and author of the TARR Report, states in this month's TARR Report, "I do believe that cash does look for yield, and an increase in cash purchases is a sign that house prices might have bottomed."

Graph taken from the TARR Report dated May 2011.