Although South Florida still ranks amongst the top regions in the US for cash sales, the percentage of cash deals in Miami-Dade continues to decline.
Only 28% of sales were all-cash in the 1st quarter of 2017 compared to 48% in Q1 2014. From 2009 to 2014 cash sales dominated, representing 50-70% of transactions. The percentage of cash sales has now declined for 12 straight quarters, while the percentage of financed deals continues to increase.
Analysts cite various reasons for the decrease in cash deals, including an improved lending environment with greater financing options and historically low interest rates. A stronger US Dollar that has also deterred foreign cash buyers. The biggest reason may be the decline in distressed properties which has meant fewer cash investors, and more “real buyers” (ie- end users) who usually seek bank financing.
If you are interesting in buying, selling or renting in Miami, contact Alex Larmier, your local real estate specialist.
Alex Larmier | 786.301.5357 | firstname.lastname@example.org