87% of Homebuyers in Detroit Paid Cash

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We all know that when it comes to making purchases, cash is king.  However, when it comes to buying homes, more often than not, there is a loan involved.  A recent article in the Wall Street Journal (reposted on Realtor.com) says that in the city of Detroit the vast majority of buyers are paying in cash – even with rising home prices.  In the first six months of 2018, 87% of all single-family home & condominium buyers paid cash compared with 28% paying cash nationwide.  That being said, the median price of a home in the Detroit was just just over $32k.  But also:

“People looking to buy those renovated homes—often affluent young professionals or emptynesters—may also face challenges in getting a mortgage because those properties are difficult to appraise. Lenders have trouble determining the value of a newly renovated home in a neighborhood otherwise filled with distressed properties because there are few comparable sales to benchmark against.”

Click here to read the full story on Realtor.com.

 

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Director of Education & Outreach, National Real Estate Investors Association

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