In this video I'll look at a surprising trend in homeownership and how that may foreshadow commercial real estate.
According to a new report from Redfin, roughly one-third (31.9%) of home purchases were paid for with all cash in October. To put this in perspective, that's up from 29.9% a year earlier, so not a huge swing, BUT it is the highest it's been since 2014.
Interestingly enough, this trend is led by Florida at 50% of purchases being all cash, which according to the recent U-Haul index has the highest number of in-migration cities.
With the current interest rate environment, folks migrating out of higher-priced cities are driving up the demand in the sunbelt and bringing cash. This is a trend that we may see migrate into the commercial multi-family space. All cash purchases in a high-interest rate environment, resetting prices lower until the market stabilizes. Stay tuned..
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