The Real Deal Miami

Florida is king of cash sales

In May, the state's distressed sales drop sharply

July 02, 2015 12:00PM

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A chart of cash sales for the United States

A chart of cash sales for the United States

Though cash sales around the country continue to fall, Florida and Miami remain havens for deals done with dinero, according to a RealtyTrac report.

Miami ranked third in the nation for cash sales in May, representing 53.4 percent of all deals done in the city.

All five of the top cities for cash sales were in Florida. Naples and Marco Island captured the No. 1 spot, with 56 percent of its sales done with cash.

Cash sales have decreased sharply since the beginning of this year. Miami’s share of cash sales was 59 percent in February, and the national rate was 37.9 percent — it now stands at 24.6 percent.

The report attributed this drop to investors leaving the market as property inventories shrink. Though it might not be the best time to buy a rental property, the report says the environment is good for first-time homebuyers.

Mike Pappas, owner of Keyes Co.

Mike Pappas, owner of Keyes Co.

In addition to cash sales, distressed property sales have also continued their steep fall. The proportion of distressed sales in Florida dropped to 16.3 percent in May, from 22.1 percent the month before.

“The South Florida real estate market is the healthiest and most balanced in a decade. Real buyers and real sellers are back as we see the investor and distressed market fade,” said Mike Pappas, CEO and president of Keyes Company, in a statement. “Our affordability factor is still strong due to reasonable pricing and low interest rates. With our economy strengthening on all fronts our future looks bright.” — Sean Stewart-Muniz