CASH HOME SALE AT RECORD LEVELS, INVESTORS ACTIVE!

Here is another article I found in Daily News last Wednesday. That is very interesting and it is also a reason why it can be difficult to get one of the good deals for the normal (family) buyers. Look here and see what you are fighting against.

"Nearly one-third of Southern California homebuyers paid cash in February, an indication that the market remains attractive to investors.

Of the 14369 new and existing houses and condominiums sold in the region, a record 26 percent were purchased by ABSENTEE buyers, said San Diego-based MDS DataQuick.

INVESTORS made most of the cash purchases, although others were made by homeowners who'd paid off their previous mortgage and were downsizing after their children grew up and moved away, officials said.

"Investors are snapping up realtively affordable homes, and a lot of people are parked on the sideline waiting this market out", he said.

There were 4736 home sales in Los Angeles County during February and a record 27 percent were cash transactions, DataQuick said. The median cash price was $200000.

"It doesn't surprise me to about a third of the market is all-cash sales. Home prices are at rock bottom in some parts of the state", said Rober Kleinhenz, deputy chief economist at the California Ass. of Realtors.

Distressed properties - foreclosures and short sales - accounted for more than half of the resale market in February, DataQuick said.

Foreclosure resales totaled 37 percent of the market, down from 42 percent a year earlier.

Short Sales made up an estimated 20 percent of the market last month.

"This spring we'll see an infusion into the market of more traditional buyers, who aren't necessarily purchasing with an investor mind-set" President John Walsh, DataQuick said."
DailyNews 3/16/2011

One thing is sure, that must be a GOOD TIME to buy when these investors are buying up properties!
Marianne Leopold