Cash home sales in California set a record high! Another great reason to buy HUD Homes for Sale in Orange County.
In the article below Housingwire explains that cash home sales in California hit a record high due to investor activity. HUD Homes are marketed to owner occupied buyers. All insurable ( qualify for FHA financing) HUD homes are sold only to Owner Occupant buyers for the first 30 days they are listed. This gives owner occupant buyers a great chance to buy HUD home without investor competition. This will ultimately lead to more favorable pricing on HUD home purchases rather than regular market or REO/ bank owned purchases.
Owner occupant buyers can greatly benefit by looking at HUD owned homes in Orange County, CA. Jesse Madison is a Local Listing Broker for PEMCO, LTD. An Asset manager for HUD in Orange County, CA
California home sales reach record high
The number of homes in California purchased with cash hit a record high last year, undoubtedly a result of high investor interest, a difficult mortgage environment and perceived higher returns on investment, according to real estate data firm DataQuick.
The total number of properties paid for with cash reached 145,797 in 2012, up from the previous record high of 125,812 in 2011.
The significance of these numbers is evident when looking back at 2007, when there were only 39,731 cash sales, according to San Diego-based DataQuick.
“It’s clear that a lot of today’s housing market recovery is being fueled by people putting their own money into homes. Some cash buying is part of a normal housing market, but we’re at twice that normal rate,” said John Walsh, DataQuick president.
Walsh says there are a number of different demographics that are buying with cash. There are the standard wealthy homebuyers, buyers from abroad, retirees and empty nesters.
Of California’s overall home sales last year, a record 32.4% were cash purchases. This more than doubles the annual average of 15.6% from 1991 to 2012.
“Today, a lot of buyers are chasing what they view as the deal of a lifetime,” said Walsh.
To see a breakdown of cash purchases throughout California, click here.