Purchasing cash for houses properties is a growing trend among home buyers, and the reason that we are seeing so many transactions of this kind, is because investors who have been observing falling home prices in the U.S. for the past four years, are now reentering the market.

The National Association of Realtors reports that in the beginning of this year(2010), homes purchased with cash alone, was accounting for a larger portion of all home sales. This information was gathered through a survey of National Association of Realtors members, who were asked about their last real estate transactions. Although a large number of home buyers are deciding to buy cash for houses, investors choose to purchase cash for houses, so that they will not have to carry loans that charge interest, therefore, the homes that they purchase will provide a greater profit. A study of additional data collected by the NAR, indicates that investment activity is on the rise.

Investors accounted for 12% of home purchases in November, which grew to 15% in December, and was up to 17% by January.

Investors began to return to the market after prices finally stabilized in the latter part of 2009, following the market’s low point in 2008. Investors who are searching for foreclosures, and planning to keep them for an extended period, fall into a separate category of investors.

Choosing to make their property a cash for houses purchase, is an alternative that a large number of investors are opting for, as opposed to taking out a loan for the purchase. The prices that these homes are being offered for are so low that it would be impossible to build them for the same amount. Builders are also recognizing this reality, and are choosing to purchase single family homes and condos, do some renovations and then put them on the market, rather than building homes. By making a cash for houses deal, interest payments to the bank are not an issue. It seems that rent prices have held steady, as home prices continue to steadily decline. Investors have found remarkable bargains available on the market. A jump in investor transactions has been noticed by a number of Realtors.

There has also been an increase in the number of upscale properties being purchased by investors, through all-cash transactions. This indicates that investors expect the prices of real estate to continue it’s upward climb. Buyers willing to complete an all-cash transaction, have the upper hand on other prospective buyers who may be willing to pay a higher price for the same property, but their purchase will be contingent upon financing. Deals that do not involve any financing will not usually fall through, and will typically be able to close faster. If you want to be in control in the negotiating process, and have your transaction close fast, you need to be prepared to make the deal with cash. Cash for houses provides you with power. The current market provides the perfect conditions for purchasing homes, according to a number of investors, since the prices are so low now, the property has a high probability of maintaining it’s value.

Today’s market has more and more foreclosure properties that are larger, split-level brick homes that have a greater number of bedrooms, and will gain substantially in value over time. This is due to the large number of upscale homes that were purchased by prime-rate borrowers, who have lost their homes to foreclosure.