I wrote a piece for AOL this week that was very telling: cash real estate transactions are up, as originally reported by the Wall Street Journal: in fact, cash buyers may be juicing up the market, especially in the underwater areas. The WSJ wonders if this could be a good gauge that the market has bottomed. When looking deeper, I found that cash real estate transactions were as high as 51% of all the real estate transactions in troubled Las Vegas, where it is cheaper to buy a home than rent IF you can get financing. Cash buyers represented more than half — 50 percent — of all transactions in the troubled Miami-Fort Lauderdale area last year, this according to Zillow.com. Looking back at 2006, cash was king on only 13 percent of deals. That cash was enough infusion to make Miami home prices actually rise 15 percent in 2010 from a year earlier, according to the Miami Downtown Development Authority. And in drowning Phoenix, the percentage of buyers in Phoenix paying cash hit 42 percent in 2010 — which was more than triple the rate in 2008.
Nationally, the National Association of Realtors says only 28 percent of real estate sales were all-cash deals last year. Compare that to a rate of 14 percent in October 2008, which is when the NAR first started tracking the measure.
So I want to track the cash sales rate in Dallas. If you have made any cash sales or purchases, please pipe in right here and comment. What I’m hearing is that there are a lot floating around, and deals are coming in at 10 to 20% the asking prices. On a $2,200,000 home, a cash buyer plunked down a cool two million and the seller said, deal. This in Park Cities.