Almost 40% of Phoenix-area homes were bought with cash last year
Add Axios as your preferred source to
see more of our stories on Google.
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?"