Eight out of 10 Manhattan homes bought all with cash

Trend fueled by lack of inventory, abundance of foreign investors

TRD 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 Article

arrow_forward_ios
Flatiron Health CEO Nat Turner and Shutterstock CEO Jonathan Oringer with the penthouse of 71 Laight Street (Credit: Getty Images)

30-something healthcare entrepreneur buys $19.5M Tribeca penthouse

Chinese investors, facing new regulations, shift focus from Vancouver to Toronto

Resi scorecard: Manhattan condo inventory through February 2019

Sluggish sales market continues to bolster Manhattan rents: Elliman

Literary listing: Estate asks $3.2M for New York apartment of late author Philip Roth

These were the 10 largest Manhattan real estate loans in January

Manhattan i-sales market hit 2-year high last year with $24B in deals

Manhattan’s luxury market hasn’t started off the year this slowly since 2012.
Here’s why.

arrow_forward_ios