There are only a few homebuyers that pay cash as they purchase real estate properties in the U.S. But is paying cash in buying a new house a boon or bane?
Realty Biz News has shared the date that was recently released by RealtyTrac® for the month of May. The data says that for May 2015, there is only 24.6% that has been purchased in cash from the group of all single family homes and condominiums sales. There is a decline in figures as compared to April (28.5%) and On May 2014 the stat for this category is (30.4%). Records show that May 2015 is indeed the lowest by far since November 2009.
The indication for this data is that the cash sales share of the real estate market for May 2015 was closer to the long-term average dated back in January 2000. With the figure at 24.8%, it reflects far below the peak that was obtained in February 2011 when those who bought cash had reached up to 42.2%. in addition, the recent reports illustrates that the share of institutional investors who bought no less than 10 properties throughout the whole year period fell to 2.4% from the single family home sales.
According to the experts, it is advantageous for homebuyers who are looking to elevate the property market or even for first-time buyers, since the interest rates are very low. Besides, the competition for property is also diverse.
Realtor explained in their article published in 2013 that buying cash is definitely an advantage at present market. Aside from cash buying is definitely favored by sellers, here are the following benefits are enumerated: the home price may be reduced especially those who could pay in full up front, no loan means no holdup for mortgage approval plus no interest and less paperwork, and above all, it also gets rid of loan rejection.
