Special Report

10 Cities Where Homebuyers Pay Cash

4. Tampa-St. Petersburg-Clearwater, Fla.
> Pct. cash sales: 54.6%
> Median list price: $144,900 (17th lowest)
> Pct. institutional sales: 6.9% (15th highest)

Investors appeared to be attracted to the Tampa area’s low home prices. A typical property was listed for $144,900 in July, lower than in most major metro areas. Nearly 55% of home purchases were made with cash, and nearly 7% of sales went to institutional investors in the second quarter of 2014, higher than in most cities. These figures were actually lower than in previous months. In the first quarter of 2014, all-cash purchases accounted for 63% of transactions, and institutional investors purchased one in seven homes sold.

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3. Sarasota-Bradenton-Venice, Fla.
> Pct. cash sales: 61.5%
> Median list price: $181,000 (47th lowest)
> Pct. institutional sales: 6.6% (16th highest)

All-cash purchases accounted for more than 60% of all home purchases in the Sarasota metro area. Homes in this area were still far cheaper than five years ago. The median listing price was only $181,000 in July, up 7% from the year prior, but 27% lower than the median listing price in 2009. Home prices in this metro area vary widely. Homes in parts of the area are far more expensive, particularly those along the water. However, portions of the area can be extremely cheap, with homes often listed for less than $100,000.

2. Cape Coral-Fort Myers, Fla.
> Pct. cash sales: 62.1%
> Median list price: $221,450 (32nd highest)
> Pct. institutional sales: 4.2% (31st highest)

Like the rest of the state, the Cape Coral metro area was hit hard by the housing crisis. More recently, however, the city has shown signs of a housing market recovery. The typical home price rose by 20% in only a year, from $183,900 in July 2013 to $210,450 in July 2014, among the larger increases of any city reviewed. Despite rising prices, homebuyers have continued to largely pay for property in cash, with the percentage of cash purchases little changed between the second quarters of 2013 and 2014. Additionally, over 11% of July transactions were short sales, more than in all but five other metro areas.

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1. Miami-Fort Lauderdale-Pompano Beach, Fla.
> Pct. cash sales: 64.1%
> Median list price: $225,000 (28th highest)
> Pct. institutional sales: 8.2% (10th highest)

More than 64% of home sales in the Miami metro area were paid for in cash during the second quarter of this year, more than in any other metro area in the nation. Like every other area where all-cash home purchases were common, the housing market in the Miami metro area has been relatively distressed. More than 10% of property sales in the area were short sales in July, among the higher rates in the U.S. The local real estate market has also attracted interest from institutional investors, who made up more than 8% of sales in the second quarter, more than in all but a handful of other metro areas. Wealthy Latin American buyers, too, are often credited with providing a boost to Miami real estate.

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