Montco Sees Major Jump in All-Cash Home Purchases
Montgomery County is topping the list of places that have seen the most increases in all-cash house purchases, according to Redfin. Between October 2021 and October 2022, 31.2 percent of homebuyers paid in all cash. This is a jump from 22.7 percent.
Nationally, roughly one-third of home purchases were paid for in cash this past October. This is because of the surge in mortgage rates.
Florida is the state that has seen the most all-cash purchases, Jacksonville being at nearly 50 percent.
“Mortgage rates have declined in recent weeks but are still hovering above six percent. During the pandemic housing boom, buyers were incentivized to pay in cash because of low rates, which drove up competition and made all-cash offers an effective bargaining chip for those who could afford them,” said Redfin’s Economic Research Lead Chen Zhao.
The Philadelphia metro area also saw a jump from 24.9 percent of all-cash purchases to 37.1 percent.
The metro areas that see the lowest number of all-cash purchases are the Bay Area, Seattle, Los Angeles, and Newark, N.J.
Read more about the number of all-cash purchases in The Title Report.
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