Cash Buyers in South Florida’s Real Estate Market
Buyers who pay Cash for their Property purchases in South Florida instead of Financing their Property purchases with a Mortgage continue to represent a significant portion of South Florida’s Real Estate Buyers. This has been been the case in South Florida for many Years–first becoming more prevalent after the 2008 Real Estate crash ended and then increasing consistently to the point of becoming the norm.
The largest numbers of Cash Buyers are in the Luxury and ultra luxury Market overall and in all price ranges of the Condo Market. Although many of South Florida’s Cash Buyers are individual Investors and groups of Investors, many are also non-Investor Buyers who are purchasing properties for personal use–primary Residences and vacation Residences.
Cash paid for Property purchases is paid in the form of Funds wired to a Bank Account, typically the Bank Account of a Title Company or Attorney, and then wired to the Property Seller’s Bank Account at the time of Closing.
Below are details about Cash property Transactions that were conducted in Broward County during the Months of October 2019 – March 2020, per MLS and Broward County’s Residential Property sales Records for Single Family Homes, Condos and Townhomes. These sales primarily include the Resale Market, however, some new construction sales are included as well. I will include information for Palm Beach County and Miami-Dade County in separate posts.
Cash Purchases of Broward County Condos and Townhomes
- $1,000,000 – $4,100,000 purchase price range: 80% of the Transactions were Cash purchases. 160 total Properties were sold and 128 were Cash purchases.
- $700,000 – $998,000 purchase price range: 55% of the Transactions were Cash purchases. 142 total Properties were sold and 79 were Cash purchases.
- $500,000 – $695,000 purchase price range: 50% of the Transactions were Cash purchases. 219 total Properties were sold and 111 were Cash purchases.
- $300,000 – $499,000 purchase price range: 38% of the Transactions were Cash purchases. 1,029 total Properties were sold and 395 were Cash purchases.
- Purchase prices under $300,000: 52% of the Transactions were Cash purchases. 6,523 total Properties were sold and 3,429 were Cash purchases.
Cash Purchases of Broward County Single Family Homes
- $1,000,000 – $20,500,000 purchase price range: 48% of the Transactions were Cash purchases. 398 total Properties were sold and 195 were Cash purchases.
- $700,000 – $995,000 purchase price range: 26% of the Transactions were Cash purchases. 474 total Properties were sold and 127 were Cash purchases.
- $500,000 – $699,999 purchase price range: 18% of the Transactions were Cash purchases. 1,045 total Properties were sold and 194 were Cash purchases.
- $300,000 – $499,999 purchase price range: 10% of the Transactions were Cash purchases. 3,473 total Properties were sold and 380 were Cash purchases.
- Purchase prices under $300,000: 26% of the Transactions were Cash purchases. 2,177 total Properties were sold and 568 were Cash purchases.
