More than 45 percent of Tampa Bay home sales paid for in cash

In many counties in the Tampa Bay area of Florida, home purchases made with cash are dominating the real estate market, according to the St. Petersburg Times.

Statistics from 2010 showed that in Hillsborough, Pasco and Pinellas Counties, cash buyers accounted for 38, 46 and 52 percent of all residential home sales, respectively, according to the source.

Though the prevalence of cash home buyers is becoming common in some other areas, such as Las Vegas, which recently surpassed 50 percent of homes being paid for with cash, the numbers in the Tampa area are still far above the national average, which was 28 percent in 2010, the source said.

Buying a home with cash "is a guarantee to get a lower deal," Nick Fraser, owner of Remax All Star in Madeira Beach, told the source.

However, experts caution that the spike in cash purchases is not necessarily a sign of a recovering real estate market. It may simply be a sign of investors taking advantage of high foreclosure inventory, which can be bought at below-market prices, according to the Times.

Despite a decrease in the number of local foreclosures in January, city officials are expecting a resurgence in foreclosures this spring, the Times previously reported. 

More News