The issue has been building for a decade in all parts of the country. It started during the recovery from the last housing meltdown, as investors swooped in to gobble up foreclosed homes at fire sale prices, churning whole neighborhoods into rentals. As the pandemic fed the appetite for migration south/southwest and away from high-density urban areas, the competitive nature of the market favored those who had the resources to make cash offers and nudged out those who needed bank financing to close.
Of course, there isn't anything wrong with cash buyers, per se. As interest rates have risen and pushed many buyers to the sidelines, the buyers left standing are the ones who aren't concerned with the costs to borrow. However, from a city planning perspective, a growing population means you need to have housing available to avoid the issues of homelessness impacting some urban centers. Recent studies are beginning to show just how much impact and influence cash buyers are having in communities. Scottsdale Realtors recently republished data supplied by the Washington Post regarding cash buyers in the Northeast Valley.
We are here to help! If you want to find out how much your home is worth in this strong market, email me at [email protected]. We would be happy to help you determine if the time is right for you to sell your home or buy a new home.