All Cash Buyers in Phoenix
Mar 15th, 2009 by Vinny
Some Valley realtors are seeing what they consider to be a surprising trend in this tough market.
All cash sales.
“It is amazing,” said Brett Barry of Realty Executives in Cave Creek. “There are some investors but we’re also seeing regular buyers looking to buy a first or second home.”
Barry says of the fifteen listings he has in escrow right now about half are all cash deals. He says in several homes there have been multiple offers and sometimes offers above the listed price.
A Wall Street Journal article recently showed that all cash made up a third of home sales in the Phoenix area in January.
“Stocks and bonds have turned out to be tough investments,” said Barry. “There are few places for people to put their cash. It seems like a lot are saying let’s put it into a house.”
Barry says it is not a trend he would have expected but has seen an increase in all cash purchases over the past few months. It mainly has impacted bank owned properties that are often more aggressively priced than private sales.
“It gives me a real degree of confidence that people are willing to put their money in the market,” said Barry.
Buying a home with cash gives the buyer the advantage when there are multiple offers and paves the way for a quicker closing.
Purchasing a home does have some disadvantages. It will eliminates any tax advantage the buyer would get on their tax return. Before moving money around to make such a purchase it is best to consult a financial expert.
