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The amount of homes being purchased for cash in the last half of 2023 and first month of 2023 has seen a "significant surge," according to a new report.
Naples real estate agent Mike Rodriguez, with Coldwell Banker Realty, compiled the report using Attom Data. Rodriguez says the data is for the six months ending Jan. 31.
And in that period, Naples led the way in the region, with 58.9% of all transactions conducted in cash. Cape Coral and Fort Myers are not far behind, with 52.2% of home sales completed through cash transactions, the report found.
"The flourishing real estate landscape in these vibrant coastal communities continues to attract investors and homebuyers alike, driving a surge in cash purchases," Rodriguez says.
The statistics, he adds, indicate a "robust demand for properties" in Southwest Florida and reflect the confidence of buyers in the region's long-term investment potential.
The Naples market often impresses: Data from Rodriguez follows the Business Observer reporting there were 187 homes or properties listed for over $10 million in Naples, according to MLS data. Out of those 187, 48 were more than $20 million and 17 more than $30 million.
But the use of cash to buy homes, sans any kind of financing, surprised Rodriguez, despite 2023's higher interest rates.
Rodriguez says the prevalence of cash sales indicates a strong market and also a "discerning nature of buyers" who recognize the stability offered by properties in Naples, Cape Coral and Fort Myers.
But why pay for a home in cash?
Rodriguez says the allure of cash transactions lies in the "expediency and certainty, often allowing buyers to secure properties swiftly and sellers to streamline the sales process."
Cash offers typically stand out in competitive markets, providing buyers with a distinct advantage in negotiations, he says. "As Southwest Florida continues to evolve and flourish, real estate professionals anticipate sustained momentum in cash sales," Rodriguez says.
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