Florida Home Buyers and Investors Blog

I have been curious lately about all the chatter of cash buyers, and how they are really making it difficult for the average Joe to buy a home with financing.

The best place for agents to look for answers is the Regional Association of the Palm Beaches MLS system.

Here are some interesting facts.  Palm Beach County ONLY.

In the past 12 months, there were a total of 9,866 properties purchase without financing.  971 of the properties sold from $500,000 - $12.5 Million all cash.

• 3,575 Single Family Homes
• 4,634 Condos
• 1,572 Townhomes/Villa
• 85 Other (Mobile Homes)

It appears there were a large number of people sitting on the sidelines like sharks circling their prey, waiting for this moment in time.  When cash buyers are willing to commit their money to purchase Real Estate, the general consensus is they feel we are at or close to rock bottom prices.

Frustration form ready willing and able buyers to purchase good homes at fair prices are at an all time high.  We have not see this amount of frustration since 2003-2005, when homes were selling the same day over list price.

REO Sellers, are rarely considering any FHA buyers, due to the restrictions and difficulty in getting homes approved.  Forget condos, financing is next to impossible.

Condo financing must meet FHA guidelines, which require the Condo association to have less than 15% owners delinquent paying their dues, and less than 50% investor participation, as well as having 10% or more in reserves.  This criteria knocks out 80% of the condos in South Florida.  These restrictions have a negative impact on prices, the buyer pool is left to cash buyers only.