May 15, 2024 - News

🤑 All cash home buying on the rise

Line chart showing that the share of home purchases made with cash in the San Francisco metro area changed from 19.8% in January 2011 to 19.9% in January 2020 and dropped to 13.2% in April 2020. In February 2024, the share was 29.9% 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 the San Francisco Bay Area, as well as nationwide, according to new data from Redfin.

Why it matters: Rich people can adapt to this 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 there's a need.

Mortgaged home sales are down year over year, per the report. Lack of affordability has pushed would-be first-time buyers to the sidelines.

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