Cash Sales Clip CUs
In South Florida, 69% of all home sales this summer were cash, with a state-wide rate of 66% according to data from RealtyTrac.
It doesn’t take a Harvard MBA to figure this must impact lenders, who obviously aren’t writing loans on these homes. Talk to some Florida credit unions, and they’ll confirm the trend is hitting not only the mortgage department, but members who have squirreled away down payments as they anticipate buying their first home.
Adamczyk said there are two groups of cash buyers: big institutional investors who have moved into the market with billions of dollars and small investors seeking to make money renting out a home.
“As long as the return is good, and money is cheap for the investor, they’re going to keep buying,” he predicted. “Rates are definitely going to impact on how much they buy.”