Cash Buyers Putting ‘Squeeze’ On Boston Real Estate Buyers
Apparently all cash buyers are putting the squeeze on normal real estate buyers. 40% of all the condos sold in Massachusetts in April did not involve any financing or mortgage. A quarter of all home sales also did not involve a mortgage or financing. There are many factors involved such as those people who in the past would normally be out of their parents homes are still not moved out yet due to the bad job market and can’t afford to pay a mortgage and the first time buyers are finding that they cant afford prices that are rising in today’s real estate market. Rents are rising right along with home prices. In Brighton, there was an 11.6% jump in rents in June compared to one year ago. Maybe those who are still living at home with mom and dad should look at the brighter side; at least they don’t have a mortgage loan that is higher than what the property is worth. It is apparent that many of the all cash buyers are foreign investors, and many of the new all cash buyers are the mover-uppers who are discovering that in today’s market, they can get their wanted price when selling, allowing them to put a substantial amount down when they turn around and purchase their new “move up” home.
You can read the entire article in the Boston Real Estate Now Blog, visit www.boston.com/realestate.