Cash Sales of Tampa Bay Homes Shooting Up

More and more buyers are snapping up Tampa Bay homes with cash, based on data released by Florida Realtors. From just about 800 cash sales of single family homes in Hillsborough County in the second quarter of 2010, cash sales have shot up to 1,926 units in the second quarter of 2013. Similarly, from cash sales of 585 condos and townhomes in the second quarter of 2010, cash sales of Tampa condo and townhouse units have gone up to 842 units in the second quarter of 2013.

Aside from the significant and continuous increase in Tampa Bay single family homes paid in cash, cash sales have also been getting a bigger share of the home sales pie. Nearly 45% or nearly half of all sales in the second quarter of 2013 represented cash sales. That percentage is more than double the 26-percent share in the second quarter of 2019.

The percentages for cash sale of condos and townhomes were even bigger. Historically, cash sales of condos and townhomes are abundant, as these property types are the ones crowding the lower price ranges, which are the usual targets of cash-rich investors. But cash purchases for these properties have really shot up, from a pie share of 54.5% in the second quarter of 2010 to 62.6% in the second quarter of 2013. That’s approaching two-thirds of total sales.

What Factors Are Triggering Cash Sales? It can safely assumed that investors have been pushing cash sales. News items abound about out-of-state companies invading the Tampa Bay real estate market looking for cheap properties that could be turned into attractive rentals. Realtors also talk about getting more and more inquiries from investors, both from around the U.S. and from other countries.