Cash really is king, especially when it comes to buying a home in Southwest Florida. The number of homes bought with cash has rapidly increased over the past few years. Cash deals in Florida comprised 57% of home sales during the month of June, according to RealtyTrac. FHA conforming loans have become more restrictive and expensive and some loans require private mortgage insurance that adds $200 a month to one’s monthly payment.With the rise in interest rates, cash buyers have a huge advantage and don’t need to be concerned with higher interest rates at all. Not everyone has the financial means to pay cash, so many have had to downscale because of the higher cost of financing.
People have been watching the market and are aware that prices are moving up and they want to jump in before prices push even higher. They are pulling the trigger early because it’s only going to get more expensive in the future. A recent survey of the Fort Myers market indicated home prices were up 36% during the second quarter of this year compared to last year, the third largest rebound in the country. If you can pay cash, now is the time to buy. The housing market is slowly but surely moving toward a more normalized pattern and prices are only forecasted to increase. Click HERE to search available homes on the market in Southwest Florida or contact us at 239-963-4811 with any questions.