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By Kerry Smith<\/div><\/div>\n

31% of U.S. Dec. sales were for cash, though Fla. percentages ran as high as 52% in West Palm Beach. VA and FHA loans also rose in most Fla. metro areas studied.<\/span><\/span><\/p>\n<\/div>\n

SEATTLE \u2013 Roughly one-third (31.2%) of U.S. home purchases were\u00a0 cash sales in December, according to a report from Redfin. That\u2019s up from 28.8% one year earlier but down from an eight-year high of 31.9% hit in November. Florida, however, largely saw a higher percentage of cash sales in the six metro areas studied.<\/span><\/span><\/p>\n

The share of U.S. cash sales remains elevated above pre-pandemic levels because mortgage rates are high, averaging 6.36% in December. Buyers are motivated to use cash because the can avoid high interest on a loan.<\/span><\/span><\/p>\n

On a pragmatic level, monthly mortgage payments have risen about 25% year-to-year due to mortgage-rate increases throughout most of 2022.<\/span><\/span><\/p>\n

The typical monthly mortgage payment is up about 25% from a year ago, when rates were around 4%.<\/span><\/span><\/p>\n

However, mortgage rates began to drop a bit during the last two months of 2022. As a result, the percentage of cash sales also declined in November and December.<\/span><\/span><\/p>\n

All-cash purchases are common in two notable scenarios: When mortgage rates are high and when the housing market is competitive. The latter explains why the prevalence of all-cash purchases shot up in late 2020 and remained elevated throughout 2021.<\/span><\/span><\/p>\n

FHA and VA loans<\/span><\/span><\/h3>\n
In December, FHA loans made up 16% of mortgaged home sales \u2013 the highest portion since the start of the pandemic. Nearly one in six (15.6%) mortgaged home sales nationwide used an FHA loan, up from 12.5% a year earlier \u2013 the highest share since May 2020.<\/span><\/span><\/p>\n
VA loans have also become more common, with 7.1% of homebuyers who took out a mortgage in December using one. That\u2019s up from 6.2% a year earlier and the highest share since July 2020.<\/span><\/span><\/p>\n
FHA loans \u2013 and VA loans, to a smaller extent \u2013 became increasingly prevalent in the second half of 2022 as the overall housing market cooled considerably due to rising mortgage rates and buyers gaining more negotiating power. Plus the year-to-year figures are being compared to 2021 during the ultra-competitive pandemic housing market.<\/span><\/span><\/p>\n
The share of mortgaged home sales using an FHA loan fell to a record low of 10.4% in April 2022, while VA loan usage bottomed out in March and April 2021 at 5.5%.<\/span><\/span><\/p>\n
FHA-financed buyers are more likely to get their offers, which tend to include small down payments, accepted in a cool market where there is little to no competition from other buyers. In a hot market, sellers often choose cash buyers or those using conventional loans, believing those deals are more likely to close quickly and efficiently.<\/span><\/span><\/p>\n
\u201cBuyers are successfully using FHA loans more often now because sellers are eager to jump on any offer they get when their home sits on the market and gets just one or two showings a week,\u201d says Redfin Senior Economist Sheharyar Bokhari. \u201cThat means buyers with less money in the bank are finally able to win homes.\u201d<\/span><\/span><\/p>\n
But it\u2019s not all good news, adds Bokhari. FHA buyers \u201care getting accepted because the market is slow, and the market is slow because high rates and prices make it unaffordable for a lot of people.\u201d<\/span><\/span><\/p>\n
Still, conventional loans remain the most common type of mortgage: 77.3% of December\u2019s mortgaged home sales used a conventional loan, down from 81.2% a year earlier, for the lowest level since June 2020.<\/span><\/span><\/p>\n
Cash, VA and FHA loan changes in Florida<\/span><\/span><\/h3>\n
Dec. 2022 year-over-year cash sale percentages<\/strong><\/span><\/span><\/p>\n
\n
Fort Lauderdale: 43.5%, up from 40.4%<\/span><\/span><\/li>\n
Jacksonville: 45.3%, down from 47.8%<\/span><\/span><\/li>\n
Miami: 45.0%, up from 39.7%<\/span><\/span><\/li>\n
Orlando: 37.7%, down from 39.6%<\/span><\/span><\/li>\n
Tampa: 39.1%, down from 41.1%<\/span><\/span><\/li>\n
West Palm Beach: 52.0%, up from 51.4%<\/span><\/span><\/li>\n
National: 31.2%, up from 28.8%<\/span><\/span><\/li>\n<\/ul>\n
Dec. 2022 year-over-year FHA loan percentage changes<\/strong><\/span><\/span><\/p>\n
\n
Fort Lauderdale: 18.2%, up from 13.9%<\/span><\/span><\/li>\n
Jacksonville: 15.3%, up from 10.5%<\/span><\/span><\/li>\n
Miami: 15.0%, up from 11.7%<\/span><\/span><\/li>\n
Orlando: 16.9%, up from 11.9%<\/span><\/span><\/li>\n
Tampa: 18.2%, up from 11.9%<\/span><\/span><\/li>\n
West Palm Beach: 15.8%, up from 12.1%<\/span><\/span><\/li>\n
National: 15.6%, up from 12.5%<\/span><\/span><\/li>\n<\/ul>\n
Dec. 2022 year-over-year VA loan percentage changes<\/strong><\/span><\/span><\/p>\n
\n
Fort Lauderdale: 4.4%, up from 3.2%<\/span><\/span><\/li>\n
Jacksonville: 20.7%, up from 16.3%<\/span><\/span><\/li>\n
Miami: 2.5%, up from 1.9%<\/span><\/span><\/li>\n
Orlando: 6.7%, up from 5.6%<\/span><\/span><\/li>\n
Tampa: 9.9%, up from 9.2%<\/span><\/span><\/li>\n
West Palm Beach: 3.6%, up from 3.6%<\/span><\/span><\/li>\n
National: 7.1%, up from 6.2%<\/span><\/span><\/li>\n<\/ul>\n
\u00a9 2023 Florida Realtors\u00ae<\/span><\/span><\/p>\n<\/div><\/div>\n
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\nAuthor: kerrys<\/p>\n","protected":false},"excerpt":{"rendered":"
By Kerry Smith 31% of U.S. Dec. sales were for cash, though Fla. percentages ran as high as 52% in West Palm Beach. VA and FHA loans also rose in most Fla. metro areas studied. SEATTLE \u2013 Roughly one-third (31.2%) of U.S. home purchases were\u00a0 cash sales in December, according to a report from Redfin. That\u2019s up from 28.8% one year earlier but down from an eight-year high of 31.9% hit in November. Florida, however, largely saw a higher percentage of cash sales in the six metro areas studied. The share of U.S. cash sales remains elevated above pre-pandemic levels because mortgage rates are high, averaging 6.36% in December. Buyers are motivated to use cash because the can avoid high interest on a loan. On a pragmatic level, monthly mortgage payments have risen about 25% year-to-year due to mortgage-rate increases throughout most of 2022. The typical monthly mortgage payment is up about 25% from a year ago, when rates were around 4%. However, mortgage rates began to drop a bit during the last two months of 2022. As a result, the percentage of cash sales also declined in November and December. All-cash purchases are common in two notable scenarios: When mortgage rates are high and when the housing market is competitive. The latter explains why the prevalence of all-cash purchases shot up in late 2020 and remained elevated throughout 2021. FHA and VA loans In December, FHA loans made up 16% of mortgaged home sales \u2013 the highest portion since the start of the pandemic. Nearly one in six (15.6%) mortgaged home sales nationwide used an FHA loan, up from 12.5% a year earlier \u2013 the highest share since May 2020. VA loans have also become more common, with 7.1% of homebuyers who took out a mortgage in December using one. That\u2019s up from 6.2% a year earlier and the highest share since July 2020. FHA loans \u2013 and VA loans, to a smaller extent \u2013 became increasingly prevalent in the second half of 2022 as the overall housing market cooled considerably due to rising mortgage rates and buyers gaining more negotiating power. Plus the year-to-year figures are being compared to 2021 during the ultra-competitive pandemic housing market. The share of mortgaged home sales using an FHA loan fell to a record low of 10.4% in April 2022, while VA loan usage bottomed out in March and April 2021 at 5.5%. FHA-financed buyers are more likely to get their offers, which tend to include small down payments, accepted in a cool market where there is little to no competition from other buyers. In a hot market, sellers often choose cash buyers or those using conventional loans, believing those deals are more likely to close quickly and efficiently. \u201cBuyers are successfully using FHA loans more often now because sellers are eager to jump on any offer they get when their home sits on the market and gets just one or two showings a week,\u201d says Redfin Senior Economist Sheharyar Bokhari. \u201cThat means buyers with less money in the bank are finally able to win homes.\u201d But it\u2019s not all good news, adds Bokhari. FHA buyers \u201care getting accepted because the market is slow, and the market is slow because high rates and prices make it unaffordable for a lot of people.\u201d Still, conventional loans remain the most common type of mortgage: 77.3% of December\u2019s mortgaged home sales used a conventional loan, down from 81.2% a year earlier, for the lowest level since June 2020. Cash, VA and FHA loan changes in Florida Dec. 2022 year-over-year cash sale percentages Fort Lauderdale: 43.5%, up from 40.4% Jacksonville: 45.3%, down from 47.8% Miami: 45.0%, up from 39.7% Orlando: 37.7%, down from 39.6% Tampa: 39.1%, down from 41.1% West Palm Beach: 52.0%, up from 51.4% National: 31.2%, up from 28.8% Dec. 2022 year-over-year FHA loan percentage changes Fort Lauderdale: 18.2%, up from 13.9% Jacksonville: 15.3%, up from 10.5% Miami: 15.0%, up from 11.7% Orlando: 16.9%, up from 11.9% Tampa: 18.2%, up from 11.9% West Palm Beach: 15.8%, up from 12.1% National: 15.6%, up from 12.5% Dec. 2022 year-over-year VA loan percentage changes Fort Lauderdale: 4.4%, up from 3.2% Jacksonville: 20.7%, up from 16.3% Miami: 2.5%, up from 1.9% Orlando: 6.7%, up from 5.6% Tampa: 9.9%, up from 9.2% West Palm Beach: 3.6%, up from 3.6% National: 7.1%, up from 6.2% \u00a9 2023 Florida Realtors\u00ae \u2715 ADVERTISEMENT Go to Source Author: kerrys<\/p>\n","protected":false},"author":4,"featured_media":7646,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/posts\/7645"}],"collection":[{"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/comments?post=7645"}],"version-history":[{"count":0,"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/posts\/7645\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/media\/7646"}],"wp:attachment":[{"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/media?parent=7645"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/categories?post=7645"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/tags?post=7645"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}