Investors picking up bargain properties is a significant part of the housing market, many of them cash sales.Good News
Sales of previously owned US homes rose in November to their highest level in three years, figures have shown.Sales rose 5.9% to a seasonally adjusted annual rate of 5.04 million last month.Meanwhile the economy grew faster than previously thought in the third quarter, at an annualised rate of 3.1%.The Commerce Department had previously estimated that growth hit 2.7% in the three months to September.However economists still predict much slower growth in the final three months of the year.
The NAR said that there was "healthy demand" in the housing market.
Growth rates in percentages from extremely depressed levels are misleading.
If the value of a house drops from $200K to $100K, that is a 50% decrease. If the value then increases from $100K to $150K, that is a 50% increase. So a 50% decrease followed by a 50% increase results in a 25% loss, no matter how you cut the cake.