Tags: Cash | Buyers | Inject | Adrenaline | US | Housing | Market

Extreme Makeover: We'll Take the House and Pay Cash

By    |   Thursday, 10 Feb 2011 09:12 AM

With home prices down as much as 40 percent from their peaks, buyers are snapping them up with 100 percent cash, putting some zest back in the market. A bountiful 28 percent of the nation’s home sales last year were all cash, according to the National Association of Realtors, The Wall Street Journal reports. That’s up from 14 percent in October 2008.

In the Miami-Fort Lauderdale area, more than half of all home sales came in cash last year. Those deals helped push downtown Miami prices up 15 percent in 2010.

The activity comes as investors have grown more comfortable that the financial crisis is over. They are taking on more risk in a multitude of financial markets as they chase higher returns.

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A home sells in Millis, Mass.
And after the housing market’s crash, buyers are finding plenty of bargains.

Last summer, Georgia piano teacher Virginia Hall-Busch discovered a home she liked in Stone Mountain. The home’s initial asking price was $159,000.

"I offered them 50," she tells The Journal. "I figured it wasn't like I needed a place to live. I can afford to be a little cocky." She got it for $52,500.

Not everyone is bullish on housing, especially after the Standard & Poor’s/Case-Shiller home price index fell 1.6 percent in November from a year earlier.

“With these numbers, more analysts will be calling for a double dip in home prices,” S&P’s David Blitzer told the Los Angeles Times.


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With home prices down as much as 40 percent from their peaks, buyers are snapping them up with 100 percent cash, putting some zest back in the market. A bountiful 28 percent of the nation s home sales last year were all cash, according to the National Association of...
Cash,Buyers,Inject,Adrenaline,US,Housing,Market
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2011-12-10
Thursday, 10 Feb 2011 09:12 AM
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