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Nearly Half Of All Home Sales All-Cash Deals

Thursday, May 8, 2014 - 9:32 AM
All-cash deals hit a record 43% of home sales during the first three months of 2014, according to RealtyTrac. That's up from 19% a year earlier and the highest level reported since RealtyTrac began tracking the deals in early 2011.

All-cash deals account for nearly half of all home sales - May. 8, 2014
9
ShorebreakShorebreak2,671 posts since
Apr 6, 2010
Rep Points: 14,481
1. Thursday, May 8, 2014 - 10:33 AM
Statistically, wha is the significance of a one year "spike"? What were the data for 2011 and 2012? A waste if time.
Paul B.
1
paulhb2paulhb22 posts since
Feb 7, 2011
Rep Points: 10
2. Thursday, May 8, 2014 - 4:08 PM
Why this isn't a "waste of time"...

If you do want a mortgage, you might not be able to get one: Lending standards remain unusually tight, keeping lots of potential buyers out of the market.

Also, big, institutional investors have started buying up lots of homes and renting them out. They accounted for about 20 percent of the all-cash sales in December (and about 8 percent of home sales overall).

The high share of buyers paying with all cash is a "red flag" for the housing market, Daren Blomquist, vice president of RealtyTrac, told me. "It's like we put the fate of the housing market in the hands of the wealthy few," Blomquist said. "Hopefully we can see the number of cash buyers go down. That's what we need to see for long-term recovery."

An Astonishing Share Of Homebuyers Are Paying All Cash : Planet Money : NPR
7
ShorebreakShorebreak2,671 posts since
Apr 6, 2010
Rep Points: 14,481
3. Thursday, May 8, 2014 - 4:18 PM
Maybe people are paying cash since they know the same money will only get them a pitance in interest if left in a bank account.  This way they have something to show for their money and they won't end up paying quite a bit more for it in mortgage rates.  I don't agree that this is only being done by the "wealthy few".
2
paoli2paoli21,398 posts since
Aug 10, 2011
Rep Points: 6,129
4. Friday, May 9, 2014 - 11:40 AM
If you can pay cash and still have an emergency fund, paying cash is always best. If married It is quite difficult to get over the standard deduction even with property tax but then to pay tax on interest if you don't have to is not a good financial decision. Borrowing only makes the bond holders rich. 
4
Ally6770Ally6770930 posts since
Jan 16, 2010
Rep Points: 2,706
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