Home buyers who require financing for their home purchase can struggle to compete against buyers who have offers of all-cash.
Where are all-cash deals are the most prevalent? Cash deals represented 80 percent of home sales in June in Vermont; 58 percent in Nevada; 57 percent in Florida, and 51 percent in New York, according to RealtyTrac. Cash deals represent a very small percentage in Texas, Utah, and New Mexico.
The markets with the most all-cash transactions tend to have a high number of foreclosures and depressed home prices, which attracts investors and private equity firms, according to RealtyTrac.
The following 10 metros had 40 percent or more all-cash deals out of the total home sales in June, according to RealtyTrac:
- Miami/Ft. Lauderdale: 64%
- Las Vegas: 62%
- Tampa, Fla.: 58%
- Detroit: 56%
- Orlando: 53%
- New York: 49%
- New Orleans: 43%
- Memphis: 43%
- Jacksonville, Fla.: 42%
- Atlanta: 42%
Source: “Housing markets where cash is king,” CNNMoney (July 25, 2013)