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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.)

Year
Cash Sales
Median SP
Non-Cash Sales
Median SP
Cash %
2009
290
$1,105,500
1,290
$781,000
18%
2010
400
$1,007,500
1,485
$800,000
21%
2011
426
$1,032,500
1,554
$805,000
22%
2012
551
$975,000
1,771
$795,000
24%
2013
639
$1,015,000
1,915
$925,000
25%
2014
579
$1,283,600
1,604
$950,000
27%
2015
603
$1,878,158
1,759
$1,000,000
26%
2016
614
$1,402,500
1,659
$1,090,000
27%

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.

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