Eight out of 10 Manhattan homes bought all with cash

Trend fueled by lack of inventory, abundance of foreign investors

New York /
May.May 15, 2014 11:50 AM

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


Related Articles

arrow_forward_ios
More contracts signed in the city for more expensive homes (iStock)
Manhattan condo signings jump 65% in November, led by priciest homes
Manhattan condo signings jump 65% in November, led by priciest homes
Clockwise from top left: 2875 Morningside Heights, 38-21 12th Street in Long Island City, 46 Nevins Street in Brooklyn (Google Maps)
Investors flip NYC industrial, hotel, office buildings in pre-holiday frenzy
Investors flip NYC industrial, hotel, office buildings in pre-holiday frenzy
Top October loans: Cash cows, big buys, foreclosure avoidance
Top October loans: Cash cows, big buys, foreclosure avoidance
Top October loans: Cash cows, big buys, foreclosure avoidance
Jill, Harry Karman sue Upper East Side neighbor over unfinished renovation
Jill, Harry Karman sue Upper East Side neighbor over unfinished renovation
Jill, Harry Karman sue Upper East Side neighbor over unfinished renovation
Brookfield, Ravitch ink $582M deal for Waterside Plaza
Brookfield, Ravitch ink $582M deal for Waterside Plaza
Brookfield, Ravitch ink $582M deal for Waterside Plaza
\665 Fifth Avenue in Manhattan and Rolex CEO Jean-Frederic Dufour (Getty, David Chipperfield Architects)
Building time: Rolex files for 199K sf Midtown building
Building time: Rolex files for 199K sf Midtown building
Village theater back on market after failed deal; 3 more warehouses sell
Village theater back on market after failed deal; 3 more warehouses sell
Village theater back on market after failed deal; 3 more warehouses sell
(iStock/Illustration by Kevin Rebong for The Real Deal)
“Brace yourselves”: Residential agents prepare for return of foreign buyers
“Brace yourselves”: Residential agents prepare for return of foreign buyers
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...