Cash buyers remain major players in the Southwest Florida housing market.
The Sarasota-Manatee area ranked fifth among the largest U.S. metro areas for cash home sales at the end of 2015, according to a new report by data provider CoreLogic.
Cash sales accounted for 51 percent of all home deals in the two counties, CoreLogic said, reinforcing other reports that buying without borrowing is still the most popular way to acquire residential real estate here.
That was up from 47.2 percent in September, but down from 54.3 percent one year earlier.
Cash buyers have dominated the regional real estate market for several years, even leading the nation for the top share early last year.
While the impact of large institutional investors — who dominated the market during its early rebound — has slowed, smaller investors have become more active. Baby boomers at or near retirement also are selling homes up north and paying cash for homes here.
Florida tied for third nationally for the share of cash sales at 46 percent, CoreLogic said.
Nationwide, cash sales made up 33.4 percent of all homes sales in December and 33.9 percent for the full year, the lowest annual level since 2008.
“The cash sales share peaked in January 2011, when cash transactions accounted for 46.6 percent of total home sales nationally,” CoreLogic said. “Prior to the housing crisis, the cash sales share of total home sales averaged approximately 25 percent.
“If the cash sales share continues to fall at the same rate it did in December 2015, the share should hit 25 percent by mid-2017,” it said.
Herald Tribune March 24, 2016
