by Bill McBride on 8/29/2009 09:38:00 PM
Saturday, August 29, 2009
Here is some data from the Atlanta Fed on cash buyers in the southeast. This is part of the economic and financial highlights the Atlanta Fed puts out weekly.
Click on graph for larger image in new window.
From the Economic Highlight:
Orlando and Tampa Realtor data [earlier] showed an increase in the share of cash buyers, but in recent months that share has weakened somewhat.The percentages for Orlanda and Tampa are similar to the percentages in the lower priced areas of the California Bay Area: see the table in Carolyn Said's recent article in the San Francisco Chronicle 'Cash is king' in market for foreclosed homes
In the Knoxville market, where home sales and prices did not accelerate as much as in Orlando and Tampa, the share of cash buyers had peaked earlier in the year but has tapered off since March.
I suspect many of these cash buyers are investors buying for cash flow (not the speculators we saw during the boom). Frequently these investors are buying in the same areas as first-time home buyers (some motivated by the $8K tax credit) - and the competition is pushing up prices and reducing supply. Now if we just had better first-time home buyer data ...
Posted by Bill McBride on 8/29/2009 09:38:00 PM