Nearly Half 2014 Home Sales are Cash

As of the first quarter in 2014, all-cash deals hit a record of forty-three percent according to RealtyTrac. This all-cash housing purchase increase, which is at its highest reported level since 2011, can be attributed to intense buyer competition and the recent stringent mortgage requirements.

Daren Blomquist, vice president of RealtyTrac believes homebuyers who want to purchase in the current competitive housing market are opting to make an all-cash offer to appear more attractive to sellers. Some buyers are even putting up cash bids just to shoot up to the top of the potential buyer list.

The National Association of Realtors (NAR) also found the share of all-cash deals up and institutional investors’ purchases decreasing in a separate survey. This means despite the national inventory shortage, there is still strong demand from other cash buyers including second-home buyers and even owner-occupant buyers. Lawrence Yun, the NAR chief economist also attributes the higher levels of cash sales to the aging of the baby boom generation, with more trade-down and retirement buyers paying cash with decades of equity accumulation.

If you’d like more information on purchasing a home with cash or would like to know the current mortgage rates, please contact the Russo Team today.

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