Realtor Economist: nearly 25% of today’s sales are all cash deals.
March 4, 2010 by Chief Editor
Filed under Buying, Housing, Market Direction/Analysis
From CNBC: “Existing-Home Sales Plunged An Unexpected 7.2% in January.”
“Today’s figure is certainly not good news in terms of sales,” said Lawrence Yun, chief economist for the NAR.
Distressed sales accounted for 38 percent of sales, sharply higher than December’s 32 percent.
Yun said all cash deals represented about a quarter of all sales, sharply higher than the normal level of about 10 percent, a signal that investors are a key component of sales and traditional buyers are still skittish.
Further the market has to content with these issues this Spring:
- FHA tightening qualifying standards further this Spring.
- Pullback of Government purchases of mortgage backed securities which has assisted in keeping mortgage rates low.
- Continued pressure from distressed property coming to market.