Cash sales rose to 33.3% last month
Cash sales in April – 33%
Cash sales in 2011 – 26.5%
Who are the Cash buyers?
Investors make up the largest percentage
Retirees or those close to retirement who are downsizing
Luxury home buyers
What could be driving Cash Sales?
Foreclosed resale numbers are still declining with 26.7% of homes sold in May were foreclosures. It hasn’t been this low since February 2009 when the percentage of foreclosure sales 56.7% of the homes sold. Last year, foreclosures made of 33.2% of homes sold.
The number of short sales has also decreased – 19.8% of the homes sold were short sales – down from 20.7% in April. However, it went up just a bit from last year which was 18.4%. This could be because more lenders are working with home owners instead of foreclosing.
Even though the lower priced homes are driving the Sales, sales of homes priced in other pricing levels have been doing well. Home prices are still about 40% below their peak in 2007. Reports say they bottomed out in April 2009, but are making a SLOW recovery.
$200,000 and less 7% over last year
$200,000 – $400,000 18% over last year
$300,000 – $800,000 23.1% over last year
$800,000 + 11.8% over last year
Below is a graph showing interest rates and home prices from the California Association of Realtors® over the last several quarters. With low home prices, it makes sense to purchase your home now in the Desert area whether you are a cash buyer or financing with the current historically low mortgage rates. Home prices are not going to get any better than they are right now.
If you are interested in finding your luxury home in the Desert, contact me today!