Florida Real Estate Buyers Using Cash

You know what they say - Cash is King! - and the buying power of cash is as strong as ever. Over the last few years, the home and condo market grew very competitive, with record low interest rates and a large population of Americans looking for a vacation escape after Covid. During this time, cash real estate purchasers lost a little bit of buying power as sellers looked for “highest and best” and were less worried about contingencies associated with financing. Now that interest rates have more than doubled, we have seen cash sales soar in 2023. Just in the last few months, the percentage of U.S. cash sales hit its highest level since 2014 with more than one-third of real estate transactions closing with cash.

Now, as more and more people from up north or out west, in states like New York, Massachusetts, Washington and California move to Florida, they are selling their properties and bringing cash to Daytona Beach and Central Florida coastal towns. For this reason, there is actually a more dramatic increase in cash sales in Florida, with some cities seeing more than half of all real estate sales sold with cash this past quarter. Now, while conventional loans are still being used for home and condo purchases the majority of the time, the high rates have priced some buyers out of the market, leaving only those with cash ready to make the move.

If you are a cash buyer, doing a 1031 exchange or need a financing contact, we are ready to help. Please contact us for all of your Central Florida real estate needs.