Record Share of Cash Homebuyers Last Month

March 21, 2011 No Comments »

cash

Who needs a mortgage anyways?

A record 33.7 percent of home purchases in February were paid for in cash, according to the latest Campbell/Inside Mortgage Finance HousingPulse Tracking Survey.

The group noted that the increase in cash purchases paralleled a rise in investor activity, with nearly a quarter (23.5%) of home purchases bought by investors last month, up from 19.9 percent just two months earlier.

Meanwhile, the share of distressed property sales fell to 47.3 percent in February from 49.6 percent in January, though it didn’t point to normalizing in the real estate market.

Rather, it was attributed to the ongoing robosigning fallout, which has put the brakes on many foreclosures and subsequent foreclosure sales.

Additionally, the proportion of move-in ready foreclosed properties or real estate owned, one category of distressed property, slipped to 15.4 percent from 17.5 percent.

Some move-in ready REO may have moved into the damaged REO bucket as a result of extended vacancies caused by the aforementioned mortgage servicer processing delays.

And while investor activity seemed to be on the up and up, average transactions per real estate agent in the survey fell from 2.1 in January to just 1.7 last month.

Typically, numbers rise from January to February, so it could signal a soft spring, especially with bad weather wreaking havoc on sales.

Tip: How much house can I afford?

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