Wednesday, October 09, 2013

Lawler: Declining all-cash share in Vegas and Phoenix suggests slowdown in investor buying

by Bill McBride on 10/09/2013 05:34:00 PM

From housing economist Tom Lawler:

The declining all-cash share in Vegas and (more dramatically) in Phoenix suggests slowdown in investor buying. [Here is some data]

The Arizona Regional MLS reported that residential home sales by realtors in the Greater Phoenix, Arizona area totaled 6,314 in September, down 2.5% from last September’s pace. Lender-owned properties were 8.0% of last month’s sales, down from 12.9% last September, while last month’s short-sales share was 8.8%, down from 27.0% a year ago. All-cash transactions were 33.4% last month, down from 43.9% last September. Active listings in September totaled 23,384, up 9.4% from August and up 7.3% from a year ago. The median home sales price last month was $185,000, up 23.3% from last September. Contracts signed last month were down 17.0% from a year ago.

The Greater Las Vegas Association of Realtors reported that residential home sales by realtors in the Greater Las Vegas, Nevada area totaled 3,259 in September, down 1.2% from last September’s pace. All-cash transactions were 47.2% of last month’s sales, down from 54.8% last August. Active listings in September totaled 18,253, up 1.4% from August but down 11.3% from a year ago. The median SF home sales price last month was $180,000, up 28.6% from last September.
emphasis added

CR Note: We've been seeing some decline in the "all cash share" for the last few months, and this decline looks significant. Of course not all "all cash" buyers are investors, but it is probably reasonable to use this for the trend in investor buying. I expect Tom to provide me with a table of selected cities in September (here is the data for August). This data is suggesting a slowdown in investor buying in many areas.

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