News Flash: Cash Deals Linked to Money

posted on July 7th, 2008 filed under: Real Estate News

It had to be true, but . . .

A quick study of the financing in closed single-family real estate transactions shows that sale prices are proportional to the odds of a cash deal (i.e., a deal not contingent on the buyer’s ability to obtain a loan).  The higher the sale price, the more likely it will be a cash deal.

Financing statistics were obtained for sales in Coral Gables, Pinecrest and nearby neighborhoods of Miami.  For five price ranges (the same ones used for the post about falling prices, but for a larger geographic area), here is the percentage of deals that were cash.

$0 to $499,999:  8.9%

$500,000 to $999,999:  13.7%

$1M to $1,999,999:  19.7%

$2M to $4,999,999:  20.6%

$5M or More:  40.4%

A la Monty Python, "I Have a Theory": The more money you have, the less you need to borrow.

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posted by // This entry was posted on Monday, July 7th, 2008 at 9:06 pm and is filed under Real Estate News. You can follow any responses to this entry through the RSS 2.0 feed.

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