Today, more and more homes are being purchased with cash. In fact, according to the National Association of REALTORS, almost 30% of existing-home sales in January and February 2023 were all-cash transactions vs. those financed with a mortgage, and for the past six months, cash buyers have comprised more than a quarter of the total market.
There are many reasons why cash offers are on the rise including:
- Today’s higher mortgage interest rates
- Intense competition for a limited supply of homes
- Current stock market volatility, which has made hard assets like real estate more attractive
- The household wealth that was created via the longest bull market in U.S. history (2009-2020), the subsequent pandemic stock market rally, and the pandemic-fueled housing boom