Wealthy Homebuyers Prop Up Luxury Market, Paying Cash to Avoid High Mortgage Rates
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Luxury home prices, sales, and inventory are outpacing the regular market as wealthy buyers pay cash to avoid high mortgage rates.
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43% of luxury homes sold in Q3 2022 were purchased in cash, up from 35% a year earlier. Cash purchases of non-luxury homes remained flat at 28%.
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Luxury home inventory rose 3% year-over-year while non-luxury inventory fell 20.8% as supply holds up better at the high end.
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Luxury sales fell 10.6% versus a 17% drop in non-luxury sales, a smaller decline.
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Tampa saw the biggest jump in luxury sales, up 36% with its many cash buyers. Luxury listings also rose 14% there.