February 3rd, 2014 categories: Real Estate News
Conversation over coffee this morning included the question, “Why does Florida have so many cash sales?” He said Florida is leading the country in the percentage of real estate sales for cash.
I think it’s a combination of factors:
- Florida has the largest percentage of international buyers and they usually pay cash for their properties.
- Many buyers have sold a larger home up north and are paying cash here and investing the remainder.
- Florida has been popular with large and small investors buying properties to rent – and they usually pay cash.
- Some buyers who might otherwise have taken out a small mortgage are choosing to pay cash because then they aren’t required to purchase flood insurance.
According to recent statistics from Realty Trac, 42% of national real estate sales were for cash. In Florida, 63% of real estate transactions were cash.