Oct 18, 2023 - News

Almost 40% of Phoenix-area homes were bought with cash last year

Share of single-family homes bought with cash in the Phoenix area
Data: ATTOM; Note: Companies include LLCs, corporations and other entities. Individuals include personal trusts; Chart: Simran Parwani/Axios

Cash is king in today's difficult Valley housing market.

What's happening: About 38% of homebuyers in metro Phoenix last year paid with cash, up from about 31% in 2019, according to ATTOM, a real estate data firm.

  • About 60% of cash buyers last year were individuals, while the other purchases were made by investment companies that plan to rent or flip them for profit.

Between the lines: With interest rates topping 8%, cash buying is the way to go, if you can swing it. Sellers often prefer cash buyers because they don't have to navigate loan requirements.

Yes, but: Most Valley families have to finance their homes to afford them, and they're struggling to compete with cash-flush buyers — just another obstacle for average buyers in this exceedingly tight real estate market.

The big picture: One in three U.S. homes sold in 2022 was bought in cash, per ATTOM.

  • Nearly 10% of those were sold to investors, while a quarter went to families and individuals.

Worth your time: "What Happens When Wall Street Buys Most of the Homes on Your Block?"

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