Are people paying cash for homes?

[Anonymous]

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I just read this Mortgage applications to buy a house are now lower than back during the post real estate recession GFC time period of 2009 to 2015.

That impacts many different job categories. Real estate agents, home inspectors, mortgage brokers, all of the loan processing employees and many

And wondering how homes are selling so quickly ?

[Anonymous]

Realtors are still part of an all cash transaction.

[Anonymous]

Wealth inequality.

Housing is too expensive and what little is available is won by cash offers so only wealthy people can play.

[Anonymous]

I've lost out on several homes because someone offered all cash.

[Anonymous]

People use all
Cash but less Than 30%.

Remember transactions are also won by businesses ( builders/investment groups)

[Anonymous]

Not as much as they were a year and a half ago.

[Anonymous]

Anonymous wrote:Not as much as they were a year and a half ago.

Not saying you are wrong, but do you have evidence for this claim or are you just guessing?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Not as much as they were a year and a half ago.

Not saying you are wrong, but do you have evidence for this claim or are you just guessing?

agree - curious if this is true. I lost out on a house recently to all cash. Admittedly that is one data point....

[Anonymous]

Definitely in DC. I read somewhere stats are that 1 in 3 or 4 homes in DC over 1 million is bought all cash.

Can’t comment on the burbs but lots of wealthy people in DC and in addition to lots of family money, trust funds, etc….

[Anonymous]

I've heard that overseas buyers tend to do this.

[Anonymous]

"All cash" doesn't usually mean that the buyer paid 100% from savings. It just means there is no mortgage. Many wealthy buyers use margin loans, which often have more favorable rates than mortgages.

[Anonymous]

It's not uncommon in the second home market. A house down the street from our beach house sold last month for $1.8m cash, and when we sold our previous beach house it was to a cash buyer. Neither were investors.

[Anonymous]

Anonymous wrote:"All cash" doesn't usually mean that the buyer paid 100% from savings. It just means there is no mortgage. Many wealthy buyers use margin loans, which often have more favorable rates than mortgages.

I should add that margin loan interest is fully tax deductible (assuming you have sufficient investment income to offset it, which wealthy buyers do), while mortgage interest is only deductible up to 750K.

[Anonymous]

This was our experience buying a starter home (townhouse) in Rockville. We lost our first two offers to all cash buyers who were in the process of down sizing. we were told by one selling agent “you were the best non cash offer!” Lol - thanks a lot.

We were successful on our third attempt and fortunately we like this home best. But it left a bad taste in my mouth that it’s so hard to buy a first home when you are competing against empty nesters with cash.