Almost 1 in 2 Buyers uses cash in West Palm Beach
Thomas Herremans
Residential Real Estate - Investment Properties - Developments in South Florida
In Florida, cash purchases went down in only one place: Fort Lauderdale. The number of cash purchases varied from 38.2% in Tampa to 49% in West Palm Beach.
In September, a little over one-third (34.1%) of people buying homes in the U.S. paid in cash. This is higher than the 29.5% from the year before and is the highest it's been in almost ten years, according to a report from Redfin.
In Florida, the percentage of cash purchases was higher than the national average of 34.1% in all six areas studied. The percentages ranged from 38.2% in Tampa to 49.0% in West Palm Beach.
Here's a breakdown of the percentage of cash sales in each Florida metro for September:
领英推荐
More people are using all cash to buy homes, and there are two main reasons why. Rich Americans who can already pay in cash are more likely to do so in a really expensive housing market. Also, higher interest rates are making other buyers think about different ways to pay in cash at the end. When mortgage rates are high, buying a home in cash and not paying any interest becomes more appealing.
According to Sheharyar Bokhari, Senior Economist at Redfin, “High mortgage rates are making the gap bigger between people who own homes and those who don't. Home prices are about 40% higher now than before the big homebuying time during the pandemic, and high mortgage rates are making the gap even bigger because they add more money to monthly payments.
“Rich Americans are the only ones who can avoid the pain of high mortgage rates… Meanwhile, those who are pushed to the side by high prices and rates not only can't buy a home now, but they're not saving money by owning a home for the future.”