Although you might hear or read a lot of chatter about all cash sales in other large markets like New York and Los Angeles, here in Washington DC, where home prices are among the most expensive in the country, all-cash buyers are continuing to decline as home prices continue to rise.
According to a recent report from CoreLogic, the Washington Metro area has one of the lowest all-cash transaction volumes, with just 13.4% of all residential sales in June being all-cash deals. And while over 13% still seems like a pretty substantial number, all-cash sales are actually down 3.1% from that same time last year, and are nearly a third of the national average.
So what gives?
Well, also noted in the report is that investors are still finding great deals down in Florida, with 6 of the top 10 all-cash markets being down in the Sunshine State. In June, cash sales represented an astounding 55.5% of all transactions in the West Palm Beach-Boca Raton area, while Miami saw a similar number at 53.5%.
For some perspective, industry experts say a normal market sees around a 25% share of all-cash sales, which those at CoreLogic predict we’ll see by mid-2017.
Are you in the market for a new Washington DC home or condo? Contact District One Properties today for more information about the Washington DC real estate market, or for assistance with your current home search!