Cash sales continue to dominate Las Vegas housing market

LAS VEGAS -- Cash sales continued to dominate the housing market in Las Vegas in the second quarter of 2014, accounting for 50.7 percent of all residential sales, RealtyTrac reported Monday night.

That was good enough for seventh highest percentage of cash sales in the nation from April through June among major metropolitan areas, according to the real estate analytics company from Irvine, Calif. The top six, led by 64.1 percent in Miami, were all in Florida.

Las Vegas also had the nation's second highest percentage of housing purchases from institutional investors among major metro areas at 14.4 percent, trailing only the 15.6 percent in Atlanta. RealtyTrac defines institutional investors as those who purchase at least 10 properties in a calendar year.

Cash sales accounted for 37.9 percent of all residential sales nationally in the second quarter, up from 35.7 percent a year ago. But the share of total purchases from institutional investors nationally dropped to 4.7 percent from 5.8 percent a year ago.

"The flurry of purchases by institutional investors and other cash buyers that kicked off two years ago when U.S. home prices hit bottom is finally showing signs of subsiding," RealtyTrac vice president Daren Blomquist said.

"This is a classic good news/bad news scenario for the housing market. The good news is that fewer cash buyers should help loosen up inventory of homes for sale and reduce competitive bidding, giving first time homebuyers and other non-cash buyers more opportunities. The bad news is that some of those first time homebuyers and other non-cash buyers may already be priced out of the market thanks to the rapid run-up in home prices over the past two years in many areas."

 


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