24% of Portland-area homebuyers pay cash
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on August 19, 2014 at 10:33 AM, updated August 19, 2014 at 10:35 AM
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All-cash buyers aren’t giving up much of their sizable share of the Portland-area housing market.
According to the data firm RealtyTrac, buyers paying cash were responsible for nearly one in four home purchases — 24.2 percent — in the Portland metro during the year’s second quarter. That’s down only slightly from 24.9 percent a year ago.
In urban Multnomah County, the share of cash buyers rose from 25.2 percent to 28.4 percent, but the increase was offset by declines in the suburban counties.
Cash buyers can include people who are relocating or downsizing, but often are investors seeking to flip, rent out or redevelop the house.
They have been less active in Portland than the nation as a whole, where more than a third of homes are bought using cash. Portland affords fewer opportunities for an investor because of its competitive housing market and higher home prices.
Cash buyers jumped into the market as home prices were bottoming out two years ago, seeking opportunities to flip houses or rent them out, and in doing so helped shore up the housing market.
But nationwide, they’re beginning to step back from the housing market after a rapid run-up in prices.
That’s good news for first-time homebuyers, who often compete with cash buyers over the same properties but can’t make the same guarantees the deal will close smoothly.