While all-cash buys aren’t happening equally across the U.S., the trend has appeared at a time when the average home buyer is increasingly White, wealthy, and older.
Early in the pandemic, home buyers seeking more space desperately outbid one another in the frenzied housing market. Now all-cash offers continue, even as the housing market has cooled, as a way to sidestep rising interest rates.
“What we found was those that already were more well-off were able to take advantage of the strong housing market and add to their wealth, while those trying to better their situation were often pushed to the side,” said Ali Wolf, chief economist at Zonda, a housing data and consulting firm.
Retirees, buyers who relocated using home equity proceeds, foreign buyers, investors and high-wealth individuals all outgunned bidders who needed the help of banks to finance their offers, real estate experts said.
