Paul Hagey of Inman news recently published an article speaking to something we here in the Silicon Valley know very well: CASH IS KING. For Sellers, this news is music to your ears-if you’re thinking about selling your home in the Silicon Valley we can’t promise you’ll get all cash but we can promise great service from our team. Contact us today.
“The proportion of all-cash home sales has doubled since May, making up 42 percent of all deals done in November, RealtyTrac reports — the largest proportion of cash sales since the data aggregator began tracking the stat nearly three years ago.
RealtyTrac had previously reported that cash deals made up 45 percent of sales registered in August, but the firm has since revised that tally down, citing a revision it made to methodology.
Regardless, the data — and the raw numbers behind it — does not indicate a greater raw number of investors, RealtyTrac Vice President Daren Blomquist told Inman News. What it shows is that rising home prices and rising mortgage rates have diminished the pool of buyers using a loan to buy a home.
The number of homes purchased with a mortgage fell 40 percent from October to November, to 135,154 — the lowest monthly total of financed home sales in the three years RealtyTrac’s been keeping the data. The raw number of all-cash deals in November was also down 31.2 percent from October, to 98,030.
The number of homes purchased with a loan has dropped steadily each month since May, when rates began to ratchet up. Mortgaged home sales totaled 360,227 in May, shrinking in June (338,650), July (317,002), August (288,094), September (250,026), October (225,076) and November (135,154).”
– See more at: INMAN