What an Increase in All-Cash Sales Says About These Markets
More buyers are putting in all-cash offers, especially among high-end homebuyers, says CNBC. While the rise of overall all-cash sales are not greatly higher than a year ago, some markets are experiencing more dramatic increases. In the Northeast and West, all-cash sales increased by 3% and 2% respectively. All-cash sales make up 36% of the total market, only a slight increase from 2019. These sales reflect who's buying: High-end buyers have the luxury for seller-pleasing all-cash offers, as do investors. Markets experiencing the most all-cash offers include Long Island, NY and Miami, Fla.
“This is likely a reflection of who’s buying,” said Danielle Hale, chief economist at realtor.com. “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 in Nassau County, New York, on Long Island, according to Redfin. Nearly half of sales there are all-cash. Then the next six top markets are all in Florida, including large cities like Miami, Tampa, Fort Lauderdale and West Palm Beach. Atlanta and Tucson, Arizona, are also having a higher share of cash buyers.
Some markets are seeing a much lower share of cash buyers, such as Denver; San Diego; Oakland, California; and Washington, D.C.