Where in the world is all this money coming from? That's my question after reading RealtyTrac's report that more than 42 percent of home sales during the first three months of the year were all-cash deals.
That's up from 19 percent during the first quarter of 2013 and it's the highest percentage of cash deals recorded by RealtyTrac.
The conventional thinking has been that all-cash deals were starting to wane, what with big investors like Blackrock slowly winding down their acquisition campaigns.
But smaller players, including countless mom-and-pop type players, have more than stepped up to the plate. Working on getting the Boston area numbers, but buyers putting down cash now outnumber buyers paying with mortgages in New York, Atlanta, Las Vegas, Miami, and, yes, Detroit, according to RealtyTrac.
If you have cash and want to buy or invest a home, there are obvious advantages over going the traditional mortgage route.
For one, interest rates are slowly but surely headed up, so the cost of borrowing won't last at rock bottom levels forever.
Second, cash gives you leverage to negotiate a better price.
The average sale price of all-cash deals in the first quarter at $207,668, according to RealtyTrac, or a 13 percent discount.
Of course, you have to have the cash in the bank to play this game, and I, for one, certainly don't. How about you?
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