Cash Buyers in Austin

February 8, 2011 by · Leave a Comment 

The front page article in this morning’s Wall Street Journal, “Cash Buyers Lift Housing”, is a must read for those of you thinking of buying a home in 2011.

WSJ’s Mitra Kalita starts her article by saying that, ‘Buyers in markets around the U.S. are snapping up homes in all-cash deals, betting that prices are at or near bottom and breathing life into some of the nation’s most battered housing markets.’

To read the entire article click here.

Following what cash buyers are doing in the real estate is a strong indicator of what direction the market is going. Most cash buyers are buying a primary residence and have a strong enough financial standing to pay cash rather than borrow. Or, they are investing in real estate. Either way, they are market leaders and should be paid attention to.

Another good point make in the article is that, ‘Some of the cash purchases reflect a tight lending environment, where even people with good credit and ample down payments are sometimes turned away for conventional borrowing.’ Many of our clients are also feeling this pinch when they start working with a lender. It’s one of the most frustrating experience for a buyer–even the most well qualified.

So how many buyers in Austin were cash buyers in 2010?

Approximatively 20%, according to data pulled from the Austin Board of Realtors.

Compare this to the other cities that the WSJ article profiled below.

Austin falls directly in the middle of these top cities for cash buyers. Look for our market report coming out next week that will go into greater detail on cash buyers and which direction the market is heading.

About Laura

Laura is a third generation native of Austin who grew up in Tarry Town in Central Austin. She is the owner and broker of West Austin Properties and has been selling real estate in the Austin area since 1979. Laura is married to the love of her life, Brad, and they have two grown daughters. Together, they love to explore all of the fun spots Austin has to offer.