All-cash sales for single-family homes and condominiums in Hawaii decreased to 42.5 percent of all sales statewide during the second quarter, compared to 47 percent in the same quarter last year, according to a report from RealtyTrac, the real estate data tracking service.
For the first half of 2014, cash sales totaled 39 percent, which was virtually unchanged from the first half of 2013, said Jason Martinson, vice president and regional production manager for HomeStreet Bank in Hawaii.
Buyers who pay in cash have an advantage because of Hawaii’s hot real estate market. Sales transactions are completed more quickly, and many sellers are much quicker to accept an offer if they see cash, Martinson said, adding that cash sales help drive the real estate market upward.
Lenders don’t necessarily mind cash sales, because some buyers who pay in cash turn to lenders to replenish their cash reserves, Martinson said, or to pay down their lines of credit.
Nationally, all-cash sales rose to 37.9 percent during the second quarter, from 35.7 percent in the second quarter 2013.
Bill Cresenzo Reporter – Pacific Business News