Interesting. 33% of US homes are being bought with cash. In many Florida cities, like Jacksonville it’s over 40%. People are selling their homes, downsizing, and using the equity to own their home outright. Seems the economy has been good to homeowners. Or maybe those illegal immigrants are driving up prices with bags of money they carry in here? All-cash buyers are still snapping up homes. See where they’re buying. Many of the all-cash buyers are selling previously owned homes to fund their moves. But the rise of cash buys is making it even harder for first-time home buyers. Between July 2023 and June 2024, the share of first-time home buyers in the market was only 24 percent — a historic low. “If it’s a multiple offer situation, it’s likely going to be hard to beat an all-cash offer,” said Jessica Lautz, deputy chief economist for the National Association of Realtors. Cash offers often move quicker and are seen as less risky for the sellers. And the struggle to break into the housing market may not ease anytime soon — property experts surveyed by Reuters expect affordability to get worse for first-time buyers over the next year. As cash purchases have become more common, the median age of home buyers has been ticking up and now stands at 56 years old, according to NAR’s data from July 2023 to this June. Even for first-time buyers, the median age has risen to 38 compared to 35 last year.
Average age for a home buyer is in the mid 50s now, and its the lowest percentage ever for first time buyers
Sorry. Here is free access from Archive. The answer is 14% of homes are bought by corporations and 60% are cash. If I mathed correctly that means 24% of cash buyers are corporations.. 8% of the 33%. Cash purchases on houses are rising. See where these homes are bought. - Washington Post
I think as you get older (60s plus) and the kids are gone downsizing and paying cash for a home is smart a move. Especially in Florida with homeowners insurance so expensive but required by mortgage companies. You can pick and choose your insurance limits to your needs which can lower costs significantly. Interest saved can be big depending on how much and long you finance for. Older people don’t get the market bump and compound with less time in it in many instances. I thought about paying cash but decided to keep some in CDs and financed 100K for 15 years. Circumstances will decide if I go ahead and pay it off. When I made my offer, we negotiated down to $512.500 from 550K it was accepted and signed. The next day a back up cash offer came in at full price. Whew. I’m eventually leaving my son our house fully paid for. He can stay without a mortgage or sell, his decision. I’ve suggested he stay away from mortgage companies as I think insurance will become a bigger issue in Florida than it is now that 2 hurricanes caused significant damage. As to the large companies who come in and buy for cash,,,, I’m seeing some of their properties up for sale. They have raised the rates so high many are sitting vacant while the taxes drain their profits. My wish is for more affordable housing which will force then to lower rates or sell. I see a drop in Florida housing values except in certain areas.
The big 3 might just need to be whittled down to smaller chunks of businesses. The big 3 wield far too much power and control over businesses and corporations. Bye bye, BlackRock State Street and Vanguard.
not buying it. You mean to tell me 50% of home purchases in cleveland is all cash? Seems like people should be fleeinng that place, not buying
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This is totally anecdotal, but up until a year ago, I sold homes for a builder. Once Covid hit and the mostly blue states shut things down, we were inundated with cash buyers from those states. Since I retired my friends still selling for this builder tell me the amount of cash buyers from those States has picked up. In early 2022, I was selling the model in a community I was closing out and it was an older couple who sold their 950sf house in one of the NYC Burroughs for $1.4 million and bought the 5100sf model with all the upgrades they could want for 900K cash.
Certainly my first thought. This is from 2021. Priced Out of Jax: 25% of all single-family homes in Duval County owned by investment companies
It's work from home. You can live anywhere for some jobs now. The gig is to live in low cost areas but work for high pay companies that reside in the high cost of living areas. Or live by the beach where there is no real business but work for a NY or Charlotte or Atlanta company. Or take your corporate bonuses and buy a second home at the beach. No one in the world moved for "shut downs". That's silly.
people have been moving from blue NE and Midwest states to florida for 50+ years. nothing has changed
I said it was purely anecdotal. The number of houses I sold to Northern cash buyers triples in 22 and 23. I was selling close to a house a week(48 in 22 and 46 in 23) in 21 my number of cash buyers was 12 out of 39 houses in 22 my number of cash buyers was 23 out of 48 in 23 my number of cash buyers was 22 out of 46 but I retired Nov 1 I talk to several former sales associates who tell me they are close to 50% cash buyers from up north. again as I said totally anecdotal.
Florida has seen a steady growth in population with no recent acceleration. However, I find this more interesting though... Florida is getting older...that is crazy. Florida Epi Profile Final.pdf
