Investors and International Buyers More Likely to Pay Cash
Approximately 32 percent of respondents reported cash sales in May (same as in April), according to the May 2014 REALTORS® Confidence Index [1]. A substantial number of move-up buyers, investors, buyers of second homes, and foreign clients are likely to pay cash. REALTORS® reported that high income earners, especially those working in the technology sector, are paying all-cash. Baby boomers who have accumulated equity gains and are trading down were also reported to be paying cash.
Buyers paying all-cash are reported to be winning over first-time buyers who generally obtain mortgage financing. About 12 percent of reported sales to first-time buyers were cash sales compared to about 70 percent of buyers of property for investment purposes and international buyers.
By Scholastica (Gay) Cororaton, Research Economist
