- D.R. Horton proposes 58-home development in Southwest Portland
- Existing home sales drop on mortgage rates, rising prices
- ‘Flipping’ houses growing more common in Portland
- Portland-area real estate market’s hot streak slows in September
- Government shutdown: Homebuyers may see mortgage processing delays
Homebuyers paying all-cash accounted for nearly three in 10 Portland-area sales in September, even as deep-pocketed investors with larger portfolios withdrew.
Cash buyers accounted for 29 percent of Portland, up from 24 percent a year earlier, the real estate listings website RealtyTrac reported. The increase may be influenced in part by higher mortgage rates in July, August and September.
“The housing market continues to skew in favor of investors … and other buyers paying with cash,” said company Vice President Daren Blomquist.
Sellers also tend to favor cash buyers because such purchases aren’t subject to a lender’s approval, which can delay or torpedo a deal.
But institutional investors — buyers who have purchased 10 or more properties in the last 12 months — accounted for just 4 percent of sales in September, down from 10 percent in August and 8 percent a year earlier.
Those buyers, RealtyTrac said, are pulling back in more expensive markets where median home prices are higher than $200,000. Portland’s median is close to $250,000.
They’re also looking for deals among foreclosures and short sales, and Portland has relatively few to offer. Bank-owned homes and shorts sales accounted for 13 percent and 6 percent of home sales respectively, less than the national average.
Nationally, 49 percent of home sales are made in cash. In hard-hit areas like parts of Florida, Atlanta, Cleveland and Memphis, Tenn., all-cash deals make up 50 percent to nearly 70 percent of transactions.