The amount of real estate purchased for cash might be reducing in some parts of the USA, but this practice is still flourishing in Florida. According to a recent report by the real estate firm Redfin, the greatest number of homes bought for cash was in Long Island: 66.5% of the total number of such transactions this July.
West Palm Beach is in the second place with 56.4% and Jacksonville is in the third with 45.5%. They are followed by Fort Lauderdale and Orlando with 43.4% and 42.5% respectively. A cash transaction is understood as a deal where the deed contains no information on a mortgage loan.
About one third of homes nationwide are purchased for cash, or, more precisely, 31.4% this July, which is 27.5% more than a year ago and significantly higher than the pre-pandemic performance.
Three out of five urban agglomerations in the USA with the highest percentage of cash purchase and sale transactions are located in Florida. One of the reasons is that this state is home to many wealthy buyers.
This trend peaked during the COVID-19 pandemic, so now first-time homebuyers are hard put to achieve their goal, as many people from other states have been coming to Florida and quickly buying up properties as soon as they hit the market.
A huge inflow of new residents to the Sunshine State is caused by the softer coronavirus restrictions, which led to a sharp surge of demand for residential properties.