Cash Sales Fall to Lowest Since 2009 as Distressed Property Sales Wane

The number of cash property sales declined to 25%, July, as the inventory of distressed properties also falls. Investor flippers who are not eligible for conventional financing are exiting housing as both the number of and selling price of distressed homes shrink returns. South FL still has some of the highest cash sales at just under 60%. This is positive for markets because it signals a return to normalcy. NAR reported, July 2, that the number of mortgages 3 months or more delinquent has fallen to the lowest level since 2008, another sign that there won’t be another flood of foreclosures to come. Low inventories and increasing demand for homes continues to heat up selling prices. Nation wide there is less than a 5 month supply of housing and in some markets with strong job growth, i.e. Denver, Seattle and Raleigh, Case Schiller reports a less than 1 month supply.

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