Florida's Tidal Wave of Cash-Only Home Deals
In South Florida 69 percent of all home sales were transacted entirely with cash, according to The Real Deal.
A recent study shows that Florida leads the nation in what one expert called an "astounding" rate of all-cash home sales: 66 percent. And that's just a few percentage points below South Florida, which includes Miami, Fort Lauderdale and West Palm Beach.
What is fueling the cash-only transactions? Institutional investors, foreign buyers and vacation-home shoppers. Unfortunately, first-time homebuyers are the ones left out in the cold ... or hot, since this is Florida.
The cash-only market has virtually shut out first-timers, who can't get approved for mortgages. And requirements to qualify for a mortgage have tightened significantly. It seems like the easy-lending era that preceded the 2007-09 recession is long gone.
Nationwide only Nevada (64 percent) and Maine (60 percent) came even close to Florida's tidal wave of cash-only deals, reported the Orlando Sentinel.