Florida a national leader in cash-only home sales
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Cash is king in the housing market, and Florida wears the crown.
- New data from Redfin shows that over one-third of home purchases in the U.S. are made in cash — which is much more common here than in other states.
Why it matters: Rich people can adapt to this pricey market more easily than typical buyers needing a loan.
By the numbers: Five of the 10 metro areas with the highest percentage of cash home purchases are in Florida, with Jacksonville ranked first at 54.4%.
- West Palm Beach, Fort Lauderdale and Miami ranked second, fourth, and fifth, respectively.
- Tampa Bay ranked eighth at 42.8% — well above the national average of 34.5%. Its median down payment is $39,702.
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 need to tap into it.
Between the lines: All-cash offers typically come from investors, as most buyers lack the financial means to make them.
- Investors own 27,000 homes across the Tampa Bay area.
- That's not to say investors make all these transactions. Fairweather says there's a financial benefit to not taking on an interest in this environment.
Mortgaged home sales are down year over year, per the report. Lack of affordability has pushed would-be first-time buyers to the sidelines.
- "You have to be a high-income earner/dual household" to buy in this market, North Carolina agent and first-time buyer specialist Jeff Clay told Axios.