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Twin Cities Cash Home Purchases At Record-Breaking Levels

June 20, 2011 by Leave a Comment
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The Twin Cities continues to see spectacular demand from cash home buyers this year and is on track to make 2011 the biggest year ever for cash home purchases.  Since the 1st of this year, fully 1 in 4 home sales recorded by the RMLS of MN have been cash sales - 3600+ and counting so far this year! Cash buyers are often investors, but not all of them are.  Some investors are buying to turn homes into rentals, which in this market is a growing need, while other investors are buying these homes and then fixing them … [Read more...]

Filed Under: Crystal Ball Projections, Foreclosures and Short Sales, Info for Buyers, Info for Sellers, investors, Market Stats Tagged With: , ,

2 in 3 Bank Owned Homes Under $100k Sold to Cash Buyers

September 23, 2010 by 5 Comments
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During the first 6 months of 2010, 63% of all the bank owned homes under $100,000 were purchased with cash.  Why is this? Banks LOVE cashBanks that have foreclosure inventory on their books want to sell those homes quickly and they want to be sure that if they accept an offer that the buyer will be able to close on the property. Cash offers can close quickly and also eliminate concerns about appraisals and the buyer's lender approvals so the seller has higher confidence it will close.  All things being equal, … [Read more...]

Filed Under: Community Issues, Foreclosures and Short Sales, Info for Buyers, Info for Sellers, Market Stats, Opinion, Personal Experiences Tagged With: , , , ,

Twin Cities: 1 in 6 Homes Purchased With Cash in 1st Half of 2010

July 12, 2010 by 3 Comments

Based on data from NorthstarMLS, I was able to put together the following chart that shows how home buyers in the first 1/2 of 2010 were financing their purchases.  Fully 1 in every 6 buyers paid in cold hard cash, a huge increase from the 1 in 20 to 1 in 25 ratio more typical of this market. While our MLS does not track the data necessary to confirm it, in my experience the vast majority of cash purchases are investors/rehabbers - I would put the number at 75% or higher. … [Read more...]

Filed Under: Foreclosures and Short Sales, Info for Sellers, Market Stats, Opinion Tagged With: , ,

Investors Competing with Home Buyers on Foreclosures

January 20, 2010 by 17 Comments
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In the last 12 months I've had a few situations where my client's offer on a foreclosure was rejected in favor of a cash offer.  In my office, I know of many others that have experienced the same thing. With the data provided by RMLS that I used yesterday to comment about FHA transactions, I am also able to dig down deeper and look at the detail at the MLS-area level.  In Minneapolis-North, median sales prices have fallen from around $150,000 in 2006 to around $50,000 today - due almost entirely to the fact … [Read more...]

Filed Under: Community Issues, Foreclosures and Short Sales, Info for Buyers, investors, Market Stats, Opinion, Personal Experiences, special financing Tagged With: , , ,

FHA Loans Make up Nearly 40% of Real Estate Sales in Twin Cities in 2009

January 19, 2010 by 4 Comments
type of financing by percentage of twin cities sales

The housing market continues to change and one of the largest changes in 2009 was the resurgence of FHA financing.  As lenders have tighted up financing requirements and increased down payments from 0% a few years ago to predominantly 10% today, FHA's more forgiving standards and lower 3.5% down payment requirement have made it a very popular tool in the last 12 months.  In fact, FHA financing has zoomed from 3% of sales in 2007 to 37% in 2009 - just two years later!  That is an over 1000% increase! The … [Read more...]

Filed Under: Community Issues, Info for Buyers, Info for Sellers, Mortgage Rates, Opinion Tagged With: , , ,

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TwinCitiesRealEstateBlog.com is not a Multiple Listing Service MLS, nor does it offer MLS access.
This website is a service of Aaron Dickinson of Edina Realty, a broker Participant of the Regional Multiple Listing Service of Minnesota, Inc.