In the red-hot Denver real estate market, cash is king. Increasingly, buyers are coming to the table with cash offers and edging out others who require loans to acquire the property.
The Denver Business Journal reports that in January, cash sales of homes in the metro area made up 19.21% of all sales. Statewide, that number increased to 25% of all sales.
Interestingly, that’s less than half the sales paid with cash in Florida. The state logged 56.3% cash sales, the highest in the nation, perhaps due to the high number of retirees who are likely to have significant savings.
It’s no surprise that cash is an increasing factor in Denver metro real estate deals: In this market, with its outsized number of buyers chasing a limited number of properties, more buyers are likely to have the cash needed to seal a deal. And sellers are much more apt to take a cash offer and avoid the risk of a contract not closing due to loan issues.
The trend is likely to continue, as the market shows little sign of loosening. Denver ranked no. 4 in a list of the most active housing markets in March, according to Realtor Magazine. Homes here sold in 37 days, on average. The only markets hotter than Denver were San Jose, San Francisco and Santa Rosa, Calif. Boulder ranked just below Denver, at the number 6 position, with homes selling in an average of 28 days.
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