BrokerageIndustry News

Cash is still king

Cash buyers account for more than 25% of U.S. real estate deals

Learn the New Luxury Playbook at Luxury Connect | October 18-19 at the Beverly Hills Hotel

This may be a buyer's market, but not all buyers are on equal footing in the homebuying process. Cash is still king, and those who have it are taking full advantage of the comparatively speedy and reliable closings they offer sellers. Cash buyers have made up at least a quarter of home purchasers since the beginning of 2010, a figure buoyed by more affordable home prices and a substantial volume of distressed properties. According to the National Association of Realtors' monthly Realtors Confidence Index survey, buyers paid all in cash in 15 percent of transactions in October 2008, the first month the association conducted the survey. Fast-forward to May 2010, and an estimated 25 percent of transactions were in cash. That's a jump from 12 percent in May 2009. From January through April, cash buyers' share of transactions hovered at 26 or 27 percent, according to the NAR survey. According to real estate professionals across the country, first-time homebuyers are rare -- thoug...