In Manhattan real estate, cash is king.
While about four out of every ten 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 ten 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