The Real Deal New York

Eight out of 10 Manhattan homes bought all with cash

Trend fueled by lack of inventory, abundance of foreign investors

May 15, 2014 11:50AM

7 People Viewed

All-Cash Deals (1)

In Manhattan real estate, cash is king.

While about four out of every 10 homes sold in the U.S. in the first quarter were paid for entirely in cash, Manhattan’s rate is much higher.

In fact, eight out of 10 homes in the borough were bought with cash during the last three quarters, according to RealtyTrac.

Darren Blomquist, vice president at RealtyTrac, told the Washington Post that the high rate of cash transactions might be fueled by foreign investors who are buying property in New York. Chinese buyers, especially, are increasingly active in the market.

Tight credit, along with a low supply of available home, may also be reasons why people are turning to cash transactions, according to the Washington Post.

Foreclosures, meanwhile, are down, as is the number of homes being bought by institutional investors, according to the report.

More than half of the homes bought in Miami, Detroit, Atlanta, Las Vegas and New York were paid for all in cash, according to the Washington Post. [Washington Post] — Claire Moses

3 Responses to “Eight out of 10 Manhattan homes bought all with cash”

  1. May 15, 2014 at 9:17 pm, Mike said:

    Another less-glamorous reason: empty nesters and retirees who are downsizing. Selling their paid-off family homes and picking up smaller pads.

  2. May 16, 2014 at 11:07 am, Athanail said:

    The lending industry is also partly to blame. With a long and complicated underwriting process and appraisals that don’t keep up with current values, sellers are justifiably avoiding buyers wanting financing.

  3. May 18, 2014 at 9:24 am, Moliver said:

    amazing

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