Cash Buyers Impact Sarasota Real Estate
Posted by Bill True on
If you're considering buying a home in or near Sarasota, you've got a lot of company.
Sarasota's real estate market is, for all practical purposes, booming at a moment, even when other sectors of the economy look uncertain, and for the first time ever, nearly two-thirds of Sarasota real estate buyers are paying with cash. In fact, Southwest Florida is the only metropolitan market in the nation where all-cash deals are so dominant. According to the Sarasota Herald-Tribune, over 60% of home sales in Sarasota County were cash transactions in the first half of 2012. This trend is spread throughout the price spectrum but is most predominant in the lower price ranges (Sarasota homes for sale under $200,000).
For prospective buyers, seeking homes or condos for sale in Sarasota, this trend toward cash has both positive and negative ramifications. All-cash real estate deals can be a positive trend in several ways, reducing housing inventory and nudging up prices. The average price of a single-family home in Sarasota County has been rising with housing inventory at a 10-year low.
On the other hand, a real estate market dominated by cash can create bidding wars and sometimes squeeze out traditional buyers. Real estate investors and investment groups are playing a major role in the all-cash trend, and their impact on the Sarasota real estate market shouldn't be underestimated; they can often outbid those who are buying a home for themselves or their families. A seller with multiple offers is looking for the offer with the fewest possible deal-breakers, and given the choice, sellers in Sarasota are taking cash. Of course, a cash offer is no guarantee that you'll land the home you're bidding on. Other cash buyers may offer more than you are willing to pay.
Several factors are fueling the increasing trend toward all-cash real estate sales in Sarasota, Florida. Even for qualified purchasers, mortgages have become more difficult to obtain. And with monthly rental costs running about $1000 for single-family homes in many neighborhoods, real estate investors are flocking to purchase Sarasota homes for sale under $100,000. High-end homes for sale in Sarasota are also being bought with cash. In the first half of 2012, 179 homes in Sarasota sold for $1 million or more, and 68% (121 of the real estate sales) were cash transactions.
As Exclusive Buyer Agents and experts on Sarasota Real Estate, we continually stay apprised of the trends and changes in the Sarasota Real Estate Market. We have helped many local and foreign real estate investors and homebuyers discover and purchase the best properties for sale in Sarasota.