Back in the foreclosure era, cash buyers were everywhere, gobbling up all the deals. Many pundits thought that once the investors pulled out, the market would collapse.
But a funny thing happened on the way to the apocalypse.
It turns out, buyers love to pay cash!
They are buying the higher-end properties too, which is understandable – nobody is spending their last million or two on a house. These cash buyers probably had at least 5x the sales price in the bank!
NSDCC Detached-Home Sales, First Nine Months (Jan – Sept.)
The depth of the affluence isn’t surprising, it is the breadth. There have been 1,465 NSDCC house sales that have closed for more than $1,000,000 this year!
It puts pressure on the financed buyers. In virtually all bidding wars, the financed offers are ignored, and just the cash offers get entertained. Financed buyers would be smart to lower their sights and pick off a fixer.