More Home Buyers Are Bringing All-Cash Offers to the Table
And more of these buyers are individuals, not the institutional investors who plunged into the housing market in 2012 and 2013. Wealthy people, foreigners and retirees are transforming markets across the United States with these all-cash deals, helping make up for an alarming shortage of first-time buyers who are struggling to save for a down payment or qualify for a loan, a cause of grave concern about the long-term health of the market and its prospects for a true recovery. “It’s the investor and the wealthy individual that’s keeping the market alive,” said Mark Zandi, chief economist at Moody’s Analytics. “The wealthy buyers in particular are fully engaged now. The stock market is up and times are good for them.” But it is a frustrating time for first-time buyers who cannot compete because their offers included financing contingencies, appraisals and inspections.
- Washington Post, May 26, 2014
