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The Real Story – Cash Sales

Cash Sales and how they effect the 1Q report for Greater Cleveland area

As we continue our review of the first quarter stats for our real estate market in 2012 I want to look at the cash sales and what it means to buyers and sellers.  

Nearly 4 out of 10 transactions in the first quarter were cash sales!  When we review these stats according to price ranges you can see that the homes priced under $100,000 2 out of 3 transactions and non-distressed properties represent the larger portion. 

This is a significant indication of how buyers are investing their money.  With savings accounts (and other investment type accounts) earning lower interest rates many investors are turning to the real estate market to increase the return for their investment dollars.  It is my experience that parents are purchasing homes, doing repairs and improvements on those homes, and then renting the homes to their children. This gives the children a home to live in while the market continues the rebound, when the time is right the home is sold and the owners have realized a good return on their initial investment.    Of course this plan also works well for not family situations. 

On the included chart you will see the facts.  

Would you like to explore this option of increasing your savings/investments dollars?  Contact me and I can help you. 

Leading The Way Home,

Carol Murphy

Carol Murphy Team

KW Great Cleveland West

Avon Lake Real Estate

 

What’s the Real Story part 1

What’s the Real Story part 2

What the Real Story - Foreclosures & Distressed Sales

This post is contributed by a community member. The views expressed in this blog are those of the author and do not necessarily reflect those of Patch Media Corporation. Everyone is welcome to submit a post to Patch. If you'd like to post a blog, go here to get started.

John Q. Public June 22, 2012 at 12:40 PM
Would you like to explore this option of increasing your savings/investments dollars? Contact me and I can help you. Carol - are you seriously comfortable enough with the real-estate market to suggest this to people? Property values and prices are still falling and sales are up when looked at in comparison to the previous months, but how do these variables compare to the market standing in 2000, 2005, and 2010. If you plan on helping people invest their retirement money, you best look at how your plan now compares to the last 20 years of your market. I might be able to help clarify for your potential clients: 1) DO NOT INVEST IN REAL ESTATE 2) Do not invest in anything on the advice of the a person who makes their entire income of people like investing in their ideas (realtors) Please start telling the truth about your field instead of just trying to sell more house without any concern for what will happen after you take you cash.

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