Cash is king in housing market

Cash is king in housing market

OK, cash never really gave up its spot on the real estate throne. But after representing 30 percent of sales handled by members of the Melbourne Area Association of Realtors in 2008, the percentage of cash deals is on the rise, representing more than 40 percent of sales last year and nearly 44 percent through the first six months of 2010.

Getting a mortgage now is much more difficult and time-consuming than it was at the height of the real estate bubble five years ago. That has been a boon for deep-pocketed buyers who can close on properties without having to get a loan. Sellers will often take less money in an all-cash deal rather than waiting around for a higher offer contingent on getting a loan approved.

“I’m seeing a lot of buyers come down with cash,” said association President Nona Swann of Swann & Associates Real Estate in Grant-Valkaria. “Our Northern people are finally coming down and buying. Overall, their comments are, ‘Now the prices are affordable.’ ”

Of course, “affordable” is a relative term. Among the houses bought for cash recently were a $2.5 million riverfront estate in Indialantic and the county’s largest home, the Suntree mansion once owned by baseball player Cecil Fielder, which sold for $1.27 million.