During this time of record low mortgage rates, many people still seem to be surprised when they hear of how many homes are selling for cash.
Recent numbers released by the Arizona Regional MLS show that 2011 saw the second highest number of home sales in the last decade, which was surpassed only by the “insanity” that was 2005. Yes, really.
2011 saw 100,959 home sales in our market. Of those sales, nearly half ( over 47,000 ) were CASH sales.
Cash Still King
Investor activity high:
Of the homes sold in our market, 87% of them were under $200,000 purchases. Of that 87%, we see that a total of 63% of 2011 home sales were below $100,000! Investors are snatching up homes like crazy. Heck, remember 2005? You were hard pressed to find anything for less than $100,000. For now, you can find some “affordable” properties along the line. Yes, for the most part you will be paying quite a bit more for a home along the line than for one in outlying areas of town, but think about it… It’s money well spent. Time is money, that will never change.
Today, I noticed 16 of the 64 single family homes for sale within ( approximately ) 1/2 mile of a light rail station were priced below $100k. Of the 91 condos for sale near the line ( includes lofts, patio homes, etc. ), I noticed 31 priced at or below $100k. These numbers change rapidly and sales have been many. Multiple offers and bidding wars are prevalent in this market. While the media is still perpetuating the false notion that real estate sucks, more than a few people seem to disagree.
We are talking to many parents buying homes for their kids utilizing cash AND “kiddie condo loans.” Many of the non cash sales were FHA loans, and the kiddie condo loan is a very cool FHA product for that ASU student looking to live off of campus. The map below shows just a sample of places to live along the line. Cash or not, life along the line is pretty darn cool…
View Homes Near METRO light Rail in a larger map
If you have any questions or comments, “Just Call Nick!”
Photo / graphic by Arizona Regional MLS
Leave a Reply