After 4 years of declining values across the country, investors have come back
to the real estate market, and quite a number of them, along with others, are buying properties using all cash.
This past January, twenty-six percent of home sales were cash purchases, which is an increase of eighteen percent in January of 2009. These figures came from a review of their latest transactions by members of the National Association of Realtors.
Those who pay cash are most often investors who wish to avoid making interest payments on mortgages, thus obtaining a more significant return on their invested money. However, many buyers who are buying a home for themselves, rather than as an investment, are also paying all cash.
Other information from the National Association of Realtors reveals that there is a definite increase in the number of properties purchased solely as investments, with investment buyers up to seventeen percent of all buyers in January, 2010. This is a rise in the number of investors from twelve percent in November and from fifteen percent in December of 2009.
The real estate marked hit bottom in 2008. Prices began to stabilize in the latter part of 2009, bringing the investors back into the market. Many investors are purchasing homes that have been foreclosed upon with the intent of holding them for a longer amount of time than before.
