Cash home buying is on the rise
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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.