Cash is king again
It's raining cash.
No, I'm serious. Just look at residential sales lately.
All-cash purchases made up 45 percent of U.S. home sales in August. That was up from 39 percent in July and 30 percent in August 2012, according to California-based RealtyTrac Inc.
Is it the rise in interest rates? Yeah, that's related — even more so if the Federal Reserve winds down its bond-buying program.
Are there more institutional investors? Yeah, there is a little more of that. Market share was about 10 percent nationally in August, up from 9 percent in July.
Foreclosure sales? Always a factor, since they are all-cash purchases.
In Pennsylvania, all-cash sales accounted for 43 percent of residential sales in August. That was up from 36 percent in July and 38 percent a year ago, according to RealtyTrac.
In the Harrisburg-Carlisle area, it was 56 percent in August. Institutional investors made up 8 percent.
In Lancaster County, all-cash sales accounted for just 29 percent in August.
August also was the 17th consecutive month in which median prices nationwide increased on an annual basis. It was $175,000 for the month.
So, where do we go from here? Will cash remain king? I would say so.