Tags: Business News, Community & Outreach
July 28, 2014One-third of all home sales nationally are cash, according to the National Association of Realtors.
Cash, as they say, is king; and for the state of Georgia, it aligns right with the rest of the nation having 33 percent of all sales being cash.
This is higher than pre-recession numbers of 25 percent, but far below current cash purchase levels in some states like Florida (57 percent), New York (56 percent) and South Dakota (55 percent).
Cash purchases are typically indicative of the level of distressed properties still available, but also signify the level of support in the housing market by those buyers with cash who are choosing to put their money into real estate rather than the stock market or other investments.
Despite the drop in distressed properties, institutional investors still make up a sizable percentage of cash purchases.
Additionally, there are a greater number of foreign buyers investing in the U.S. real estate market, making up a significant part of all cash purchases.
In our area, the number of distressed purchases has declined significantly.
In the second quarter of this year, only 2.4 percent of all sales in North Fulton were distressed and only 4.7 percent in Forsyth County.
That's a far cry from the 35 percent to 45 percent levels we saw at the peak.
As a result, cash sales in North Atlanta are well below the state and national trends.
Looking at all sales for the first half of this year, for both North Fulton and Forsyth County, the percentage of cash sales comes in just under 15 percent, or approximately half the state average.