Those in the market looking to buy a home are increasingly making an all-cash purchase, which is causing additional discomfort for first-time homebuyers.
The cash-only purchases accounted for 45% of residential sales in August, which is up from 39% in July — and surging some 30% from last year.
According to RealtyTrac’s newest “Residential Forecast and Sales Report,” of the cities recorded as having the highest number of cash home purchases, the majority were in Florida.
Among metro areas with a population of 1 million or more, those with the highest percentage of all-cash sales were Miami (69 percent), Detroit (68 percent), Las Vegas (66 percent), Jacksonville, Fla., (65 percent), and Tampa, Fla., (64 percent).
“This recovery in home prices and sale volume continues to be driven in large part by cash buyers and institutional investors, as evidenced by the increasing share of sales represented by those two categories in August,” Daren Blomquist, vice president at RealtyTrac, said in a statement.
Some experts, however, warn that this is not a good sign of real estate health, hurting first-time homebuyers whose potential purchases have already been lagging because of tighter lending practices.