Cash Buyers Dwindle In The Third Quarter
A recent report found that all-cash home sales are declining in Nevada.
Las Vegas, NV, November 19, 2014 (Newswire.com) - While it may not seem like it, all-cash home buyers are a big contributor to the improving real estate market in Las Vegas and the greater state of Nevada.
For quite some time after the market crash, home prices were so low that people with the available capital were able to scoop up homes left and right with nothing but cash. Because so many people were desperate to get out from under their homes, this resulted in a boom of home sales that resuscitated the real estate market.
Unfortunately, it seems that this trend is leveling out. Home prices have begun to rise so buying a property in cash requires significantly more financial weight.
Even with institutional investors, the people with the capital to buy cash, all-cash purchases are down. Only six percent of all home sales in Nevada during the third quarter came from institutional investors. That’s a 7.9 percent decrease from last year.
Analysis of this decline varies greatly. Some experts believe that this decrease in cash buyers is related to the dwindling amount of lower-end inventory available. This makes sense since most cash buyers are investors looking to capitalize on their spending.
In order for the market to keep recovering, sales must be supplemented by more traditional buyers. The hope is that first time homebuyers and homeowners looking to upgrade will step up to the plate.
For more information about real estate trends in Las Vegas, contact John Stevenson Real Estate at 702.274.4606.