I built this chart while doing research for today’s Viewpoint e-newsletter, and although I didn’t include it in the newsletter I thought it was interesting and worth sharing.
Percentage of Total Sales for each Size Range made up by Cash, Conventional, and FHA financing.
(click to embiggen.)
* Maricopa County, Single Family Residence, Sales 1/1/10 – 4/30/10, data pulled from Arizona Regional Multiple Listing Service and deemed reliable but not guaranteed, yadda yadda yadda. VA, Owner-Carry, and a couple other financing types were eliminated from the results as they represent a tiny fraction of the overall sales activity.
Cash Buyers – investors on the low end (smaller homes) and the well-heeled on the high end. The mid-range houses have fewer cash buyers.
FHA Loans – more likely to be first-time home buyers, who are more likely to buy smaller homes. FHA also has an upper-end loan limit, which precludes most extra large homes.
Conventional Loans – bridge the gap between cash investors and first-time buyers on the smaller end, and larger-home buyers with lots of cash.
It all makes sense inherently, but it’s nice to see the data back it up.
Your sometimes likes to see what he already knows Realtor,