More Manhattan homebuyers paying cash in sign of luxury strength
More Manhattan homebuyers are paying cash than at any other time on record.
About 65% of purchases in the three months through June were completed without financing, up from 57% in the first quarter and the largest share since appraiser Miller Samuel Inc. and brokerage Douglas Elliman Real Estate began tracking payment methods in 2014.
Buyers are turning to cash as mortgage rates hover at almost double their early 2022 levels. In turn, sellers eager to close deals quickly in a market that has cooled from the pandemic boom may be more inclined to accept an offer from a bidder who doesn’t need a loan.
The climb also “reflects continued relative strength at the upper end of the market that favors cash,” said Jonathan Miller, president of Miller Samuel.
While the number of cash sales jumped 22% from the previous quarter, financed transactions fell 18% over the same period, Miller said.
In the luxury tier — the top 10% of the market — listing inventory declined year over year for the first time in four quarters, the firms said. The median price for luxury deals that closed in the second quarter was $6.7 million, up 3.9% from a year earlier.
Across all prices ranges, properties traded at a median of $1.2 million, down 4% from the second quarter of 2022.