The article in yesterday's USA TODAY described the surge in home buying by cash-rich investors. We have been seeing that phenomenon here in the S County for over a year. A previous blog addressed the reasons why these buyers are snapping up properties and paying all-cash or buying with large cash down payments.
And there were several interesting statistics in the USA TODAY article. One was that investor buying has risen nationwide to 17% of all home purchases in January 2010, up from 12% in November 2009 and just 9% a year ago.
All-cash transactions have risen as well to 26% nationwide up from 18% from Jan. 2009 and a recent low of 12% in May 2009. That means that almost 10% of all home sales today are being purchased as a primary resience by all-cash buyers! If that astounds you, consider that a good percentage of these buyers likely sold their previous home sometime in the past and have been patiently (or impatiently) watching the market and waiting for the right home to purchase.
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