Not everyone is cowed by a still-struggling housing market and banks reluctant to give mortgages. A growing number of Americans are buying houses with cash, according to a recent press release by the National Association of Realtors.
About 28% of home purchases were all-cash in 2010, up from 14% in 2008. The trend is especially strong in cities hammered hardest by the foreclosure crisis. More than half – 54% – of all home purchases in Miami in December were entirely in cash. About 45% of homes in Las Vegas and Tampa were bought with cash, and 35% of sales in Phoenix did not involve a mortgage.
Cash buyers have an advantage. They often can win a 5 to 10% reduction in the asking price, the association reported.
Image: Chelsea Oakes, via Flickr.com