Some 33% of sales of existing homes (as opposed to brand-new homes) are now cash-only deals, according to a survey by the National Association of Realtors.
The number of sales in which the buyer doesn’t take out a mortgage began to increase a few years ago during the recession, because well-heeled investors were purchasing large numbers of distressed properties with the goal of rehabbing and flipping them.
But according to the survey, in the last few years investors have been joined by a new group of cash purchasers – retirees. These older folks are selling their homes and using the equity to downsize, or are flush from the stock-market boom and are buying vacation homes or condos as an investment.
Cash offers are usually more attractive to sellers than those with a mortgage contingency, and as a result a cash buyer might be able to pay less for a property.