Cash Buyers Can Lead To Recovery

As I have mentioned in my previous blog, over 30% of Real Estate transactions nationwide are cash buyers. This percentage can increase if home values continue to fall.  If there is to be a recovery in the housing market, the recovery will be led by cash buyers. Cash buyers are a sign of a new economy. No longer can Americans afford to over-leverage themselves getting stuck with 15 or 30 year mortgages.

Since home prices have reached record lows, buyers and investors are taking advantage of cheap prices by paying in cash. It this trend continues, housing inventories can be reduced allowing home prices to appreciate. This is different from the housing bubble of a few years ago when Americans took out ARMS with little to money down and shady credit to purchase properties they could not afford.  Cash buyers can lead a legitimate recovery in the Real Estate market.

Of course this will take time considering the amount of inventory that’s still out there. Plus with a shaky U.S economy, it can take some time before we see normalcy in Real Estate. One thing is for sure, paying cash is the safest and best way to purchase Real Estate during these economic times.

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~ by fnunez on June 29, 2011.

2 Responses to “Cash Buyers Can Lead To Recovery”

  1. If home values depreciates, this time is good for buyers to invest in the real estate.

  2. Cash buyers are a sign of a new economy. No longer can Americans afford to over-leverage themselves getting stuck with 15 or 30 year mortgages.

    That’s long period of time to go for.

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