May 15, 2024 - News

Cash home buying is on the rise

Line chart showing that the share of home purchases made with cash in the Denver metro area changed from 21.2% in January 2011 to 18.4% in January 2020 and dropped to 14% in April 2020. In February 2024, the share was 27.7% compared with 34.5% nationally.
Data: Redfin; Note: Includes home purchases with no mortgage loan information on the deed. National data calculated from the 40 of the most populous U.S. metro areas; Chart: Axios Visuals

All-cash home purchases are on the rise in Denver, according to new data from Redfin.

The big picture: Denver's rate of 27.7% mirrors a national increase as 1 in 3 homes in the U.S. are purchased this way.

Why it matters: High-income people can adapt to the pricey market more easily than typical buyers needing a loan.

What they're saying: Those winning in this economy treat homes like savings accounts, Redfin chief economist Daryl Fairweather says.

  • It's a relatively safe place to store your cash, and you can always borrow against the home if needed.

The intrigue: Jon Larrance, CEO and owner of Denver-based real estate company Corcoran Perry & Co., tells us people are downsizing from larger and more expensive homes to condos in more walkable neighborhoods, like Cherry Creek.

  • The company oversaw the sales of a $9.3 million and $7.7 million property last year, which Larrance said were homes bought by "older buyers" who paid cash after selling their houses.

Follow the money: Some of these all-cash purchases are investors, but certainly not all.

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