SUCCEED FASTER  |  www.WeGetAroundNetwork.com
WGAN-TV: Now Playing
Next on WGAN-TV Live at 5
One Order  |  One Quote  |  One Contact
Book Multiple GLOBAL Commercial Locations
  • ✔  As-Builts
  • ✔  Construction Progress
  • ✔  Facillities Management
Last 24 Hours: 967 Unique Visitors
8,337 WGAN Members in 146 Countries
Last 30 Days: 58,342 Page Views | 21,572 Unique Visitors | 75 New Members
We Get Around Network Forum
Media ReleaseNewsReal Estate AgentsReal Estate BrokerRedfin

Nearly One-Third of U.S. Homes Are Bought With Cash, Well Above Pre-COVID17476

WGAN
Forum
Founder
Atlanta, Georgia
DanSmigrod private msg quote post Address this user
Redfin Media Release
---



Source: Redfin

Video: Redfin Reports Nearly One-Third of U.S. Homes Are Bought With Cash, Well Above Pre-Pandemic Levels | Video courtesy of www.WGAN-TV.com | 16 September 2022

WGAN Forum Podcast | #136

Redfin Reports Nearly One-Third of U.S. Homes Are Bought With Cash, Well Above Pre-Pandemic Levels

For buyers taking out loans, the share of homes purchased using FHA and VA loans are both up slightly from record lows as the market cools down

SEATTLE--Friday, September 16, 2022 -- (BUSINESS WIRE) -- (NASDAQ: RDFN) — Nearly one-third (31.4%) of U.S. home purchases were paid for with all cash in July, according to a new report from Redfin (www.redfin.com), the technology-powered real estate brokerage. That’s near the eight-year high reached in February and up from 27.5% a year earlier. The share of all-cash purchases jumped in early 2021 during the pandemic-driven homebuying frenzy and has remained elevated since then.

All-cash purchases are prevalent with today’s affluent buyers largely because mortgage rates have doubled from a year ago, reaching 6% in mid-September. Buyers who don’t use loans avoid high interest payments that exacerbate home prices, which remain near record highs even as the housing market slows.

All-cash purchases jumped in popularity last year because they allowed buyers to stand out among fierce competition: Bidding-war rates reached record highs in early 2021 due to sub-3% mortgage rates and remote work driving homebuyer demand. Remote work has also given more Americans the option to use all cash, as it allowed a record share of homebuyers to relocate, often from expensive to affordable parts of the country. U.S. home values have skyrocketed since the start of the pandemic, which means Americans who sell a home in a pricey place like San Francisco may use equity to pay cash in a more affordable area like Las Vegas.

Investors are also contributing to the all-cash boom. Real estate investors bought up a record share of the U.S. housing stock in the fourth quarter of last year, and their share has remained above pre-pandemic levels since then. About three-quarters of investor home purchases are made with cash.

All-cash purchases are most prevalent in Long Island, NY and Florida

Three of the five metro areas with the highest share of all-cash purchases are in Florida, partly because the state is home to a lot of affluent buyers. But Long Island, NY–which includes the Hamptons–is home to the highest share of cash buyers, with two-thirds (66.5%) of home purchases made in cash in July. Next come West Palm Beach (56.4%), Jacksonville (45.5%), Milwaukee (45.3%) and Fort Lauderdale (43.3%).

A trio of expensive West Coast markets have the lowest share of all-cash purchases, partly because high prices make it more challenging to pay in cash: Oakland, CA (15.1%), San Jose, CA (16%) and Seattle (16.7%). Washington, D.C. (17.5%) and Pittsburgh (17.8%) round out the bottom five.

FHA loans are somewhat more popular than they were at the height of the market, but less prevalent than before the pandemic

Even though all-cash purchases are at an eight-year high, most home purchases use loans. Conventional loans are by far the most common type, followed by Federal Housing Administration (FHA) and Veterans Affairs (VA) loans.

More than eight in 10 (81.3%) of home sales that used a mortgage in July took out a conventional loan, down slightly from 81.9% a year earlier and down from the record high of 83.8% set in April.

Roughly 12% of home sales that used a mortgage in July took out an FHA loan, flat from a year earlier but up from the all-time low of 10.4% in the spring. And 6.8% used a VA loan, up slightly from 6.2% a year earlier but up from the record low of 5.4% in spring 2021.

“The spike in interest rates is pricing some buyers out of the market, but it’s also helping some buyers get into the market because there’s less competition,” said Tampa Redfin agent Eric Auciello. “A lot of buyers who were repeatedly outbid earlier this year are having their offers accepted, including those using FHA loans, those with smaller down payments and ones that include inspection and financing contingencies. In 2021, hardly any buyers used FHA loans. The story is completely different now, as low down payments are no longer an automatic deal breaker for sellers.”

But FHA loans are still much less prevalent than they were pre-pandemic; about 17% of mortgaged purchases used them in 2019. That’s partly because even though the market has cooled and FHA buyers are less likely to face competition, homes are still quite expensive: The typical U.S. home that sold in July cost about 8% more than a year earlier. That means a lot of the people who would use an FHA loan–lower-income, first-time homebuyers–are priced out of the market.

VA purchases are about as popular as before the pandemic; roughly 7% of mortgaged purchases used them in 2019.

To read the full report, including charts, methodology and additional metro-level data, visit: www.Redfin.com



About Redfin

Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, instant home-buying (iBuying), rentals, lending, title insurance, and renovations services. We sell homes for more money and charge half the fee. We also run the country's #1 real-estate brokerage site. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Customers selling a home can take an instant cash offer from Redfin or have our renovations crew fix up their home to sell for top dollar. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 6,000 people.

For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center at: www.Redfin.com

---

Source: Redfin via BusinessWire
Post 1 IP   flag post
WGAN Standard
Member
San Antonio, Texas
denlee private msg quote post Address this user
All real estate is local. In the San Antonio TX MLS, for example, 2,786 homes sold and closed in the last 30 days. 557 of them (20%) were cash deals. Note: the available inventory of homes has increased from a record low of 2,850 in early March this year to 8,700 today. By comparison, inventory reached an all-time high of 14,000 in 2009.
Post 2 IP   flag post
WGAN
Forum
Founder
Atlanta, Georgia
DanSmigrod private msg quote post Address this user
WGAN Statistic of the Day
---

Source: Redfin

Statistics: Top 10 U.S. Metros | Share of Home Sales Using All Cash

Hi All,

Want to post the above to social media - but without the WGAN branding?

The branded PNG version is available - free - in the WGAN Sample Forms Library for WGAN Forum Members.

The non-branded PSD version - to add your branding - is available free to WGAN Fan Club, WGAN Basic, WGAN Standard and WGAN Premium Members. Compare WGAN Membership Plans

Dan
Post 3 IP   flag post
93711 3 3
Log in or sign up to compose a reply.