New Home Owners And Snagging Forum

Home Owners => House Prices and the housing market => Topic started by: Philofacts on June 25, 2011, 11:23:30 am

Title: Proportion of cash buyers on the increase
Post by: Philofacts on June 25, 2011, 11:23:30 am

The long-term percentage of homes bought with cash is around 25%.  More recently some commentators have suggested that it is somewhere between 35 and 40%.
However, the number of cash transaction is not increasing, just the total number of transactions has fallen so the number of cash buyers as a percentage has increased.

It is strange that with prices now 20% or more down on the peaks and with almost a zero return on cash savings accounts it is surprising that those with cash are not buying the bargains around.
Perhaps they feel that prices are still too high and now is not a good time to buy.

Title: Re: Proportion of cash buyers on the increase
Post by: Fred on July 27, 2011, 11:38:09 am

Cash buyers will have an advantage in this market.