Nearly 23% of home purchases in December were by investors.

Nearly 23% of home purchases in December were by investors, according to a new survey from Campbell/Inside Mortgage Finance. That is a slight increase from November, but the share ha remained largely unchanged for the past year.

What has changed dramatically is how many of these investors are using all-cash…74% according to the survey, which also found that, “cash buyers are able to bid significantly lower and successfully on many properties because they offer a shorter and more reliable closing timeline.”

While investor bids may not be the first offers accepted, they often end up winning properties after other home buyers are eliminated because of mortgage approval or timeline problems, according to the survey authors.

I will add my .02 cents.

I have noticed a larger portion of my inspections are buyers that have CASH. The few that have opened up and really talked with me, stated they are scared to keep their money in their investments, and WONT keep it in cash.

Smart. Never store any of your wealth in U.S. dollars.

Only 307,000 homes were sold nationwide in 2011. That is the lowest number since records have been kept since 1963. Over 30% of homes being purchased are in cash; whether by investors, or retirees. There are over 3 million homes for sale, and banks are holding many more. Average sales price nationwide dropped again in Dec. of 2011. (Fox Business)

There is opportunity for us I believe in 2012. However, it is time for the NAR and the media to stop releasing false home sales numbers. The American consumer is not stupid. As soon as the government and media start broadcasting the truth, perhaps banks will release some of the money they are holding, and approve home loans, and help the economy.

I bet nothing will start to recover until after the elections in the fall.