Realty Trac and Goldman Sachs reported that about half of home purchases this year have been to cash buyers. NAR puts the number at 31% for July sales, but still is an all-time high. That is not good news. (Not just because cash buyers have no benefit to mortgage lenders like me.)
A handful of these cash buyers are retirees or others downsizing to prepare for retirement, but the lion's share of these cash buyers are investors - either private investors or investment pools like REITs. That is not the best way to rebuild a real estate market. We need sustainable demand from entry level buyers and move up buyers. These cash buyers are possibly setting us up for another mini-bubble when these homes get rehabbed and find their way back to the market.
I am stepping up my renter marketing efforts to get more real buyers out there!
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