All-cash deals are rising in certain areas of the country, comprising about 36% of the market nationwide, according to data from realtor.com®. Buyers who can pay all in cash are finding themselves in a prime position in the competitive housing market, as sellers tend to favor those who can. Meanwhile, buyers who must rely on financing are struggling to compete.
Cash sales are climbing the most in the Northeast and West, up 3 and 2 percentage points compared to last year, respectively.
“This is likely a reflection of who’s buying,” Danielle Hale, chief economist at realtor.com® told CNBC. “While investors (who are more likely to use cash) are active in the market, non-corporate buyers, likely owner-occupants are a bigger chunk of buyers in this period and that affects the overall cash share.”
The highest share of all-cash sales is occurring in Nassau County, New York, in which nearly half of the sales are in cash, according to housing data from Redfin. Some of the highest shares of all-cash buyers are also in Florida—Miami, Tampa, Fort Lauderdale, and West Palm Beach—followed by Atlanta and Tucson, Ariz.
All-cash sales are highest for housing priced $100,000 or less as well as in the $100,000 to $200,000 price tier, according to realtor.com®. They’re also high in the very top of the market at $1 million-plus. On the other hand, all-cash sales are lowest in the $750,000 to $1 million range.
Source: “Buying a House? Here’s Where All-Cash Deals Are Most Competitive,” CNBC (Dec. 12, 2020)
