As if there was ever any other question, according to Zillow.com cash buyers represented more than half of all transactions in the Miami-Fort Lauderdale area last year.
Again, this is no surprise, after all South Florida is flooded with investors from the North as well as international ones who desire a tropical escape from their often frigid homes. What they didn’t say is how many of those transactions were single family homes vs. condos.
Or what neighborhoods these cash deals are in; hence my problem with statistics.
My other problem is that cash is great and all but what about Joe blow (the rest of us) who needs to get a loan to buy a $400K house or a $180K to buy their first condo?
What I’m seeing now is that even if Joe gets pre-approved and is willing to pay market price, the bank appraisers are coming in and blowing up the deals-appraising the property for less than the contract price. (just happen to me yesterday)
And the vicious circle of home prices slipping and people fearing the real estate market keeps going round and round so that people with cash can continue to buy at low prices and stay rich.
You can thank the media’s interpretation of statistics and scare tactics.
And again, I say, “Statistics are for Losers.” ….just ask the Steelers.