Cape Coral-Fort Myers leads in all-cash home sales
Cape Coral-Fort Myers leads the nation in all-cash home sales, according to statistics released today by Irvine, Calif.-based housing data company RealtyTrac.
Nationally, the share of all-cash sales reached a new high in the first quarter even as the share of institutional investor purchases dropped to the lowest level since the first quarter of 2012, said RealtyTrac's Q12014 U.S. Institutional Investor & Cash Sales Report.
Among metropolitan statistical areas with a population of at least 500,000, those with the top five highest percentages of cash sales were all in Florida: Cape Coral-Fort Myers (73.6 percent), Miami (67.1 percent), Sarasota, (65.1 percent), Palm Bay, (64.1 percent), and Lakeland, (61.8 percent).
"Strict lending standards combined with low inventory continue to give the advantage to investors and other cash buyers in this housing market," Daren Blomquist, vice president at RealtyTrac, said in a written release.
"The good news is that as institutional investors pull back their purchasing in many markets across the country, there is still strong demand from other cash buyers — including individual investors, second-home buyers and even owner-occupant buyers — to fill the vacuum of demand left by institutional investors," Blomquist said.
15 percent of all-cash purchases in the first quarter were properties in the foreclosure process, and 10 percent were bank-owned properties.
Other findings in the report:
11 percent of all-cash purchases in the first quarter were to institutional investors, investors buying at least 10 properties in a calendar year.
52 percent of all-cash purchases in March (most recent month's data only available for this metric) were sold to buyers with a different mailing address than the property address — indicating investors or second-home buyers. That compares to 34 percent of all sales — cash and financed — sold to investors or second-home buyers in March.
The average sales price of an all-cash purchase in the first quarter was $207,668 — 13 percent below the average estimated full market value of the properties that were purchased: $237,900.
Other major metro areas with more than 50 percent all-cash sales included New York (57 percent), Columbia, S.C., (56.1 percent), Memphis (54.9 percent), Detroit (53.5 percent), Atlanta (53.2 percent) and Las Vegas (52.2 percent).