According to data put out by McClatchy News Systems this morning, 1/3 of all buyers of homes these days is paying cash. Not news to those of us "in the business".... When agents get listings under the $180K price point, probably 80% of the offers they receive are "all cash" offers from investors. I haven't experienced that as much when we have listings over $400,000, like the news article mentions, but there are sure alot of folks out there with lots of cash...snapping up the lower priced properties. I agree with what the article says, that the investment return on real estate is alot higher than what you're getting on other investments, so now while prices aren't yet back up to what they were a few years ago, it's a perfect time to buy!
Unfortunately, the first time home buyer is at a distinct disadvantage when having to compete with these cash buyers. Many times my sellers have wanted to sell to the "owner occupant" but is lured by the buyer who wants to pay all cash and take the property as is with sellers doing no work. You can hardly blame them.....but on the other hand, as a 36 year veteran Realtor, nothing is more satisfying than selling a home to first time buyers or "move up" buyers who want to enjoy a home of their own.
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