As we continue our review of the first quarter stats for our real estate market in 2012 I want to look at the cash sales and what it means to buyers and sellers.
Nearly 4 out of 10 transactions in the first quarter were cash sales! When we review these stats according to price ranges you can see that the homes priced under $100,000 2 out of 3 transactions and non-distressed properties represent the larger portion.
This is a significant indication of how buyers are investing their money. With savings accounts (and other investment type accounts) earning lower interest rates many investors are turning to the real estate market to increase the return for their investment dollars. It is my experience that parents are purchasing homes, doing repairs and improvements on those homes, and then renting the homes to their children. This gives the children a home to live in while the market continues the rebound, when the time is right the home is sold and the owners have realized a good return on their initial investment. Of course this plan also works well for not family situations.
On the included chart you will see the facts.
Would you like to explore this option of increasing your savings/investments dollars? Contact me and I can help you.
Leading The Way Home,
Carol Murphy Team
KW Great Cleveland West