All-cash sales remain a pivotal component of Miami’s housing market

The Miami housing market still sees more all-cash sales than any large metro area in the nation, according to new analysis from RealtyTrac.

For Nov. 2015, all-cash sales comprised 59.7 percent of all Miami sales, far higher than the national average of 38.1 percent; in the last year, Miami cash sales are up 5 percent.

Interestingly, November also marked a renaissance for all-cash sales in the national market. According to RealtyTrac, the nationwide rate of all-cash sales is the highest its been since March 2013, and Daren Blomquist, the vice president of the firm, explained that the new TRID regulations were a likely cause for November’s spike in all-cash sales.

“The jump in cash sales is likely a knee-jerk reaction to the new documentation and disclosure rules for mortgages that took effect in October, making it even more difficult for buyers using financing to compete with cash buyers in the already competitive housing market,” Blomquist said. “Global economic instability may also be driving more foreign cash buyers back to the relative safety of U.S. real estate.”

See our graph below for an idea of how Miami’s market compares with other metro areas: