Over one-third of all house purchases made in the United States during the previous month were made with cash and no mortgage, according to Redfin, which is close to the record high. Purchases made entirely with cash in Florida witnessed significant growth over the previous year.
The impact that investors are having on the housing market in the state of Florida may be highlighted by the fact that our own Central Florida and Orlando-Area regions were able to top the nation in all-cash property purchases.
According to the findings of a recent study conducted by Redfin, six of the top twelve metropolitan regions in the United States are comprised of cities that allow cash transactions for the purchase of homes. These cities include Jacksonville, West Palm Beach, Fort Lauderdale, Miami, Tampa, and Orlando. "All-cash" refers to a home purchase that does not include any information about a mortgage loan on the deed, according to Redfin.
The top cities with the highest percentage of cash purchases of properties are as follows:
12. Orlando: 40.1%
11. Cincinnati: 40.5%
10. Riverside: 40.7%
9. Detroit: 40.9%
8. Tampa 42.8%
7. Baltimore: 43.1%
6. Miami: 44.0%
5. Atlanta: 46.1%
4. Fort Lauderdale: 46.2%
3. Cleveland: 48.8%
2. West Palm Beach: 53.4%
1. Jacksonville: 54.4%
According to Redfin, the majority of the growth in all-cash acquisitions can be attributed to several factors outside investors. As a means of mitigating the negative effects of increasing loan rates, some buyers are opting to pay in cash because they are flush with cash from the equity from a previous house sale. The city of Jacksonville, Florida, experienced the greatest growth in the state in terms of the percentage of all-cash purchases, which increased by eight percentage points (ppts) from the previous year. All-cash purchases also increased year-over-year in Tampa, Fort Lauderdale, and Miami, with increases of 2.5 percentage points, 2.1 percentage points, and 1 percentage point, respectively. Purchases made entirely with cash fell by 1.6 percentage points and 0.1 percentage points, respectively, in West Palm Beach and Orlando when compared to the previous year.
According to the findings of research conducted by Redfin, Florida likewise follows the national trend of greater down payments. There was a 24.1% increase in the median down payment throughout the country compared to the previous year, according to Redfin. This represents the highest annual gain in percentage terms since April 2022. With a 29.4% increase in median down payments from the previous year to the current year, Jacksonville was the only city in the state to outperform the national trend.
The city of West Palm Beach
- The average initial payment is $80,000
- 6% year-over-year change
A Miami
- The median initial payment is $77,220 and
- 7% year-over-year change
Fort Lauderdale.
- Median first payment is sixty thousand dollars
- 4% year-over-year change
In Orlando:
- Median down payment of $49,490.
- 7% year-over-year change
Tampa Bay
- Median initial payment is $39,702
- 1% year-over-year change
Jacksonville, Florida
- Median initial payment is around $31,500
- 4% year-over-year change
According to Rachel Riva, a real estate agent in Miami, "Homebuyers are doing whatever they can to pull together a large down payment to lower their monthly payments moving forward." Riva is referring to consumers who are looking to purchase a home.
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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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