Fewer Cash Buyers = Better Opportunities for First-Time Home Buyers
Thank you to: Charlee Gibson for this report
During the month of May 24.6 percent of all single-family home and condo sales were all-cash sales, down from 28.5 percent the month prior. All cash sales were also down 5.8 percent compared to a year ago (30.4 percent). This is the lowest level of all cash sales since November 2009,according to the May 2015 U.S. Home & Foreclosure Sales Report released by RealtyTrac.
The median sale price of both distressed and non-distressed properties sold in May was $173,900, up 4 percent from April but down 1 percent from a year ago. The median sale price of non-distressed homes sold in May was $205,000 and the median sale price of distressed residential properties sold in May was $116,192. This means distressed sales are selling at a median price that is 43 percent below the median price of a non-distressed sale, resulting in the largest gap since January 2006.
These statistics bode well for first-time homebuyers looking to enter the market, RealtyTrac says. With historically low interest rates and less competition from investment buyers, these first timers have a better chance at purchasing a home.
“As housing transitions from an investor-driven, cash-is-king market to one more dependent on traditional buyers, sales volume has been increasing over the last few months and is on track in 2015 to hit the highest level we’ve seen since 2006,” says RealtyTrac vice president Daren Blomquist. “And while sellers this spring are realizing the biggest average home value gains since 2006, home price appreciation is softening as the supply-and-demand balances tip more in favor of buyers and as banks began to clear out some of their more highly distressed foreclosures that sell at scratch-and-dent prices.
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