All-cash home deals in Manhattan hit record high
In New York City, cash is king. In the fourth quarter, the share of all-cash real estate transactions in Manhattan jumped to 67.9 percent of all sales. This marks a record-high market share of all-cash deals, according to appraiser Miller Samuel’s new Elliman Report detailing Manhattan sales in the last three months of 2023.
The percentage of all-cash deals in Q4 tops the record set earlier in 2023. Between April and June, 65 percent of real estate deals in Manhattan were completed without financing, as CityRealty reported at the time.
According to Axios, cash buyers usually make up roughly 50 percent of the Manhattan market.
The surge in all-cash buyers began after the Federal Reserve raised interest rates in 2022, which made borrowing more expensive. Other factors driving the uptick in all-cash deals include the return of foreign buyers and the strength of the luxury market in Manhattan, according to CityRealty.
Year over year, cash sales increased by 17.6 percent and mortgage-based sales fell 32.5 percent, according to the report.
A report from the Real Deal found Chelsea attracted the most cash buyers from October 2022 to October 2023 with 251 deals, followed by Tribeca and Lincoln Square.