By Ashley Barker
Published May 12, 2014
All-cash sales reached a new high in the first quarter of 2014 as the share of institutional investor purchases dropped to the lowest level since 2012, according to a RealtyTrac report.
About 43% of all U.S. residential property sales were all-cash purchases during the first quarter, which is up from 19.1% during the same quarter of last year, RealtyTrac’s U.S. Institutional Investor & Cash Sales Report said.
Almost 6% of all sales were from institutional investors, entities that have purchased at least 10 properties in a calendar year, which is down from 7% in the first quarter of 2013, the report said.
Daren Blomquist, vice president at RealtyTrac, said strict lending standards combined with low inventory continue to give the advantage to investors and other cash buyers in the housing market.
“The good news is that as institutional investors pull back their purchasing in many markets across the country, there is still strong demand from other cash buyers — including individual investors, second-home buyers and even owner-occupant buyers — to fill the vacuum of demand left by institutional investors,” Blomquist said in a statement.
The average sales price of an all-cash purchase in the first quarter was $207,668, and 15% of all-cash purchases were properties in the foreclosure process, according to RealtyTrac. About 10% of U.S. residential sales were for bank-owned properties, and 11% of all-cash sales were to institutional investors.
In South Carolina, roughly 52% of residential property sales were all-cash purchases during the first quarter. That’s up from 21.7% in the first quarter of 2013 and 49.2% during the fourth quarter of last year.
During the first quarter, 5.4% of all sales in the Palmetto State were from institutional investors, which is down from 6.7% in the first quarter of 2013 and 7% in the fourth quarter of last year.
Cash sales and institutional investor report for select S.C. counties
All-cash purchases Q1 2014
All-cash purchases Q1 2013
Institutional investors in Q1 2014
Institutional investors in Q1 2013
Reach staff writer Ashley Barker at 843-849-3144 or @AshleyNBarker on Twitter.