When It Comes To Condo Sales, Cash Is King

Posted by Patrick Barnard on April 24, 2014 No Comments
Categories : Residential Mortgage

A recent post on the CoreLogic Insights Blog shows that since the recession began in 2008 more than 80% of condo sales in Florida and Nevada were financed with cash.

However, that doesn't necessarily mean all these cash purchases were by investors and that the recovery has merely been an ‘illusion,’ as some attest. For example, an increasing number of consumers are buying condos as ‘homes’ without taking out a mortgage. Some are using their savings, 401K, lines of credit or a mix of financing options to complete these purchases.

In an earlier post, CoreLogic's Molly Boesel reports that cash sales made up 41.2% of all home sales in January 2014, down from 43.5% in 2013, but up from 38.4% in December.

As of January, the top five states with the highest share of cash sales for condos included Florida (81.2%), Nevada (80.5%), New York (79.5%), Alabama (75.7%) and Arizona (65.7%). These five states accounted for just over half of all condo cash transactions in the U.S., with Florida representing 36.7% of the total alone.

States with the lowest share of cash sales for condos included Virginia (32.4%), Massachusetts (36.7%), Minnesota (38.2%), Wisconsin (38.7%) and Maryland (38.9%). These five states only accounted for only 4.8% of all condo cash transactions across the country.

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