Cash sales have hit new highs in the past few years. That was bad news for borrowers trying to compete for homes in a market with tight inventory.
But now the share of all-cash deals, while still historically high, is beginning to fall, according to a Wall Street Journal report.
A third of homes sold in July were paid for with cash, according to the Journal. In the last 12 months, all-cash sales have made up about 37% of all sales. Cash deals hit their peak in late 2011 and early 2012, when they accounted for about 43% of all home purchases.
That’s been bad for the mortgage market, as tighter credit has forced many buyers out. Investors stepped in to fill that void, and many were able to outbid mortgage borrowers with the promise of a guaranteed closing, the Journal reported.
In a bit of possible good news for the mortgage market, all-cash home sales are beginning to edge downward.