40% of ALL Real Estate Purchases in the Orlando Area
It's all cash...
The Maximum Proportion in a Decade!
The highest rate in a decade—1 in 3 buyers use cash.
In Florida, just one metro area—Fort Lauderdale—saw a decline in cash purchases from year to year. In Tampa, the percentage of cash sales was 38.2%, while in West Palm Beach, it was 49%.
Because of its climate, economics, and general standard of living, Central Florida is considered one of the most sought-after locations to live in the United States. Yes, given that the USA is among the most sought-after locations to relocate globally, let me say that. Without question, one of the most sought-after locations on Earth is our own Orlando area!
According to Redfin research, just over one-third (34.1%) of all home purchases conducted in the United States last month were paid for with cash. This is the highest percentage in almost ten years, up from 29.5% a year earlier.
Because Florida, where we live, is so well-liked, the real estate market is competitive. For this reason, everyone in central Florida wants to own real estate!
Because of the intense competition, the percentage of cash sales in Florida exceeded the 34.1% national average in each of the six research metropolises, which ranged from 38.2% in Tampa to 49.0% in West Palm Beach.
Florida City's percentage of cash sales
- Fort Lauderdale: 40.5%, dropped by 0.5 percentage points
- Jacksonville: 46.2%, up by .2 points
- Miami: 40.7%, up by 2.0 points
- Orlando: 40.0% cash purchases, up by 0.6 points
- Tampa: 38.2% up by 0.2 points
- West Palm Beach: 49.0%, up by 0.8 points
Two main reasons are why a larger portion of property purchases are made with all cash. In such a costly home market, wealthy Americans who can already afford to pay cash are more likely to do so; additionally, rising rates are forcing other buyers to think of alternate options that enable them to pay cash at the closing table. High mortgage rates increase the appeal of paying cash for a home and eschewing interest entirely.
According to Redfin Senior Economist Sheharyar Bokhari, "high mortgage rates are exacerbating inequality between people who own homes and people who don't." "Prices of homes have increased by almost 40% since the pandemic-related housing boom, and rising mortgage rates have widened the gap by raising monthly payments.
"The only Americans who are immune to the pain of excessive mortgage rates are the wealthy... In the meantime, people negatively impacted by high rates and prices cannot purchase a home now and are not accumulating wealth through homeownership in the future.
Key Takeaways from This Month's Report on Financing Real Estate in Central Florida:
- The average down payment for a house buyer in the United States increased from 15% to 16.1% of the buying price last month.
- The average down payment increased by about 15% yearly to $60,980.
- Because sellers receive fewer offers than during the preceding homebuying boom, FHA loans are more popular than they were a year ago (just over 15% of mortgaged house sales last month, up from 14% a year earlier).
- VA loans accounted for just 6.3% of mortgaged sales, a slight decrease from 6.8% the previous year.
- Conventional loans accounted for 78.5% of mortgage purchases, a slight decrease from 79.2% in the previous year.
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About Realtor Scott Garrison:
Bringing over 36+ years of experience as a local Orlando Realtor, Top Central Florida Realtor SCOTT GARRISON at ReMax Town & Country Real State has helped perhaps more Orlando-Area families and investors buy and sell Central Florida Residential Real Estate than any other of the #19,000+ Orlando Realtors currently working in the Central Florida area!
Living in Oviedo and with RE/MAX Real Estate offices in both WINTER SPRINGS, Florida and WINTER PARK, FL, Top Realtor SCOTT GARRISON actively serves your best Residential Real Estate needs virtually anywhere you’d want to be in Central Florida… including Orange, Seminole, Volusia, Osceola, Brevard, and Lake Counties. Scott has lived here in the Central Florida local Orlando-Area for nearly all of his life, attending the local Winter Park High School and graduating with several degrees from the nearby University of Central Florida.
As a Top Seminole & Orange County Real Estate Agent, Realtor Scott Garrison also has extensive experience in Residential Sales and Purchases, Vacant Land and in helping clients with Foreclosures and Short Sales! He owns multiple Rental Property right here in the area, and over the years, has done many “flips” by buying “ugly houses” and making them Pretty for a new buyer, so he also understands the Real Estate Investor mindset! Call Scott today to find out why “This Realtor WORKS!”
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