Even with record low mortgage rates, 2011 has seen a surprisingly high level of cash home purchases, this according to the real estate research firm Hanley Wood Market Intelligence. Check out important videos about the real estate market in San Diego by real estate agent Justin Brennan. Search San Diego Properties.
Jonathan Dienhart and Ken Lee, two analysts with the company, say between tight lending standards and a desperate search for yield by investors, cash purchases of homes – particularly for distressed properties – became even more common in 2011 than last year. The high end market has seen quite a bit more of the cash purchases simply due to the lending restrictions. There is a lot of cash out there and people are willing to spend it if they see value especially in la Jolla, ca. You can search all the La Jolla Homes at www.TheLaJollaLife.com
Dienhart and Lee analyzed data collected through Hanley Wood’s Housing IntelligencePro, and shared their findings in a blog post.
The two discovered that 38 percent of homes purchased in 2011 were bought with all cash. That’s up from 34 percent in 2010, and double the 19 percent rate in 2006.
According to Dienhart and Lee, this trend is likely to continue in the near term. They note that cash-paying investors are responsible for an increasing share of home purchases nowadays as prior homeowners abandon the ownership market and head back to rentals.
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