International Buyers & Investors Cashing In on US Property Market
The number of investors and international buyers taking advantage of
bargains in US property has reached a record number in all-cash
purchases – and some experts predict that number will only grow higher.
A record 33% of existing-home sales were made to cash buyers in
February, the National Association of Realtors® (NAR) recently reported.
The proportion of cash deals could hit 40% by the end of this year,
predicts Thomas Popik, research director for Campbell Communications in
Washington.
Many of these cash deals are also coming from a growing number of
international buyers. About 55 percent of international buyers paid cash
for their U.S. homes, according to an April 2010 report by NAR.
Lenders are increasingly rejecting mortgage applications for foreclosed
properties, says Popik, because appraisals are often too far below the
agreed-upon price or the transactions take too long to close. With
tightened lending standards, cash purchases can provide buyers with more
leverage and allow buyers to complete transactions more quickly.
Source: Detroit Free Press
Posted: 10 April 2011
original article no longer available online
