Cash offers steadily climb in the Charlotte area
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All-cash home purchases are on the rise nationally and in the Charlotte area, according to new data from Redfin.
Why it matters: Wealthy buyers can adapt to the pricey market more easily than typical buyers needing a loan.
By the numbers: Since January 2011, 37.4% of homes in the Charlotte area have been purchased with cash as of February 2024 — higher than the nationwide 34.5%, per Redfin data.
Context: Charlotte saw an increase in the number of homes bought in cash in the years after the Great Recession, followed by a spike after the pandemic.
What they're saying: Those winning in this economy treat homes like savings accounts, Redfin chief economist Daryl Fairweather says. Homes are a relatively safe place to store your cash.
- Plus, you can always borrow against the home if need to tap into it.
Follow the money: Some of these all-cash purchases are investors, but certainly not all. The South, for instance, is a popular migration destination, Fairweather says.
- People from high-cost cities like Boston can sell their pricey homes and use the profits to purchase a house in cities like Charlotte with all cash.
- All-cash offers are attractive to sellers, and there's the financial benefit of not taking on interest in this environment, Fairweather says.
The big picture: Mortgaged home sales are down year over year, per the report. Lack of affordability has pushed would-be first-time buyers to the sidelines.
The bottom line: "You have to be a high-income earner/dual household" to buy in this market, North Carolina agent and first-time buyer specialist Jeff Clay tells Axios.