Posted by: phillipsre | March 29, 2012

1 in 3 Homes Bought with Ca$h

Vacancy rates are down, as reported earlier this week and we know builders are continuing to build and now we are seeing that in the Seattle market one in every three houses are being purchased with cash. The majority of these buyers are investors and (I imagine, although this is not in the report) that a lot of these houses may be bank owned, short sales or fixer uppers. Investors can buy these homes at auctions and then flip them, live in them or rent them out, since the rental market is strong. Unfortunately, because of our low home prices, Seattle is not pulling out of the recession like other cities in the country. Another downside is for the typical home buyers, they have to compete with investors with all cash offers. On the bright side, for those typical buyers, a lot of times banks will have a caveat that the homes purchased need to be owner occupied, which takes investors out of the mix, at least for a little while.

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