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
TF Cornerstone President Frederick Elghanayan with 2-10 54th Avenue and 55-01 Second Street in Long Island City (Google Maps)

The 10 biggest new project filings in NYC

The 10 biggest new project filings in NYC
Eric Malley was arrested earlier this week. (Getty)

Feds indict NY real estate exec in $50M fraud scheme

Feds indict NY real estate exec in $50M fraud scheme
(iStock)

Manhattan asking retail rents continue downward spiral

Manhattan asking retail rents continue downward spiral
New Yorkers signed leases in record numbers last month. (Getty)

Manhattan, Brooklyn rental leasing hit 12-year high in December

Manhattan, Brooklyn rental leasing hit 12-year high in December
President Donald Trump (Getty)

Banks, business partners cut Trump Org ties after Capitol attacks

Banks, business partners cut Trump Org ties after Capitol attacks
109 East 79th Street and 1010 Park Avenue (Google Maps)

Upper East Side trophy property tops luxury deals — again

Upper East Side trophy property tops luxury deals — again
Hellcat Annie’s and Scruffy Duffy’s at 637-639 10th Avenue (Google Maps)

Hell’s Kitchen bar owner wants to sell for Bitcoin

Hell’s Kitchen bar owner wants to sell for Bitcoin
325 West 33rd Street and Magna Hospitality CEO Robert Indeglia (Google Maps; Magna Hospitality)

Wells Fargo sells Penn Plaza hotel leasehold mortgage for $51M

Wells Fargo sells Penn Plaza hotel leasehold mortgage for $51M
arrow_forward_ios

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

Loading...