Show Me the Money: More Home Buyers Bringing All Cash to the Table

Since the housing market slumped, the National Association of Realtors has observed a trend toward 100 percent cash financing of home deals. NAR chief economist Lawrence Yun cited research showing that all-cash property purchases now account for as much as 30 percent of sales, compared to fewer than 10 percent in 2008. “We’ve seen a tremendous increase in cash buyers since the housing downturn that we haven’t seen before in history,” he said, noting that the majority of them are investors. A growing number of Baby Boomers, however, also are paying in cash as they downsize, using the equity in their existing residence to finance a smaller, less expensive property. Additionally, U.S. real estate is attracting a growing number of foreign buyers, and that latest numbers show that 62 percent of these transactions are paid for entirely in cash. Another factor contributing to the all-cash trend is tightened supply, which also has had the effect of reducing time on the market. | Read More