4 ms·

yes, but in many desirable areas a significant portion of buyers are cash only buyers whose monthly payment is $0 (other than property taxes).

• bequanna 7y ago
  Intuitively, I would say the number all cash buyers is a pretty small number in every market. Especially in a low interest rate environment. Most people with the means to pay cash for a property would likely be savvy enough to understand that that they would be better off getting a jumbo mortgage at 3.25% and deploying that capital at a higher rate elsewhere.
  • scarmig 7y ago
    IIRC San Francisco all-cash buyers were accounting for 25% of transactions a couple years ago.
    • e1g 7y ago
      Manhattan is usually at 50% all-cash. Recently it softened to 40%+, but still much higher than intuition based on everyday-folks might suggest.
  • tspike 7y ago
    Buy cash, refinance later. In a competitive housing market, sellers would rather take the cash than risk a contingency falling through.
  • jedberg 7y ago
    In hot markets you see a lot of cash buyers because they don't want to lose the deal. Some will then finance afterwards, and a lot of them are flippers who will sell the house a few months later.
  • lotsofpulp 7y ago
    > Most people with the means to pay cash for a property would likely be savvy enough to understand that that they would be better off getting a jumbo mortgage at 3.25% and deploying that capital at a higher rate elsewhere. Sellers want buyers to pay cash to reduce risk of the transaction failing. Fewer parties in the transaction is less risky. Buyers can always refinance the house after they have the title.