Cash Buyers of Homes on the Rise
Orlando, FL, Nov. 13, 2012 -- All-cash buyers have surged since the housing downturn while the typical amount of time it takes to sell a home is shrinking, according to the National Association of Realtors.
Academic experts took a closer look at cash buyers and how time-on-market impacts home sales during the “Changing Dynamics of Recent Home Buyers and Sellers” session at NAR's annual meeting.
“We’ve seen a tremendous increase in cash buyers since the housing downturn that we haven’t seen before in history,” said Lawrence Yun, NAR vchief economist.
Yun said a decade ago all-cash home purchases were less than 10% of the market but have increased steadily since 2008, to as much as 30% of sales.
Yun said the increase in more buyers paying cash for real estate reflected tight lending conditions and an increase in investor sales, which account for the bulk of cash sales.
Increases in the number of international buyers, who often have financing difficulties when purchasing a home in the U.S., are also adding to the rise in cash sales. NAR research shows that 62% of international purchases were all cash; the%age has continually increased since 2007.