From Realtor Magazine:
For the fifth-straight month, cash buyers accounted for at least 30 percent of existing-home sales, the National Association of REALTORS® reported this week.
In May, all-cash buyers made up 30 percent of existing home sales, which compares to 25 percent in May 2010 and 12 percent two years ago, according to NAR.
Low prices from foreclosures are tempting cash buyers--who are mostly investors--and prompting them to snag deals. They’re turning many of their housing purchases into rentals and immediately finding quick profits, housing experts say.
Read the entire article here.
I'd have to agree as I work with a few cash buyers here in the Metro Denver Real Estate Market. Buyers seem to be drawn like moths to a flame to a bunch of well priced bank owned properties. Many of these buyers are fixing the homes up and then renting them out due to the low vacancy rates out there. Many are also fixing and flipping these homes and finding success with that route. Regardless of which route these cash buyers are going, competition is often fierce for these homes that are priced well under market. I have represented a buyer where are offer was 26th out of a total of 28 received on a home (no lie). If you have the cash, there are definite deals out there and if you are thinking about building a real estate portfolio, now is definitely a good time to get that started. Interested in foreclosed homes for sale in the Metro Denver Area, click here to see what is available.