The housing boom and then collapse has had a ripple effect across the country. Florida was particularly hit hard, and many homeowners still struggle to avoid home foreclosure. When home foreclosure was inevitable, a large number of properties flooded the market. Those properties are being snapped up now that there is some stability to the market and the recession is waning.
In two Florida counties, 67 percent in one and 68 percent of buyers in the other used cash to purchase homes. This was a substantial increase over the last year. This move by buyers and investors is said to have increased competition for those who are first-time homebuyers. Nationally, the cash-in-hand buyers made up just over 40 percent of home sales.
Some have worried the new trend toward using cash to snap up cheap homes will result in another housing bubble and affect the growth and stability of the housing market. Many of the cash-in-hand buyers investing in Florida are from overseas. However, real estate experts project a modest growth.
As the housing market improves and properties are being bought with cash or with home loans, those who may have gone through the home foreclosure process during the height of the recession may now be ready to invest again. Others may still be struggling but also realizing they have many options for keeping their homes. One option may be filing for bankruptcy. Some forms of bankruptcy can help home owners avoid home foreclosure by allowing them the opportunity to discharge some debt and still keep the home and other assets they have worked so hard to obtain.
Source: articles.sun-sentinel.com, “Housing market: Cash is king in South Florida“, Paul Owers, May 8, 2014