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WASHINGTON — Redfin data through August 2024 found that 33% of home buyers paid cash for homes, which is the highest rate of all-cash purchases following the Great Recession.
Compass Realtor® Megan Dwyer in Florida’s southeast coast said, “The demographics of buyers doing this is incredibly broad. Young families, retirees, local moves, multistate moves.”
Some are selling their existing homes to fund all-cash offers, but these offers are making it harder for first-time home buyers to close on a home. Between July 2023 and June 2024, the share of first-time home buyers in the market reached a historic low of 24%.
Jessica Lautz, deputy chief economist for the National Association of Realtors®, said, “If it’s a multiple offer situation, it’s likely going to be hard to beat an all-cash offer” because they are less risky for sellers.
In Southeast Florida, Dwyer said the number of cash transactions rose in the last 12 months, some of which were contingent offers dependent on the sale of their previous home. Sixty percent of homes purchased in Naples were all-cash buys, according to Denny Grimes, a Realtor with Keller Williams, who adds that many buyers are shopping for retirement and second homes.
NAR’s data from July 2023 to June 2024 show that the median age of all-cash home buyers is now 56 years old, and the median age of first-time home buyers rose to 38 from 35 years old.
Source: Washington Post (12/02/24) Schaul, Kevin; Lerman, Rachel
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