There are 10 real estate markets in the United States that have the most all cash buyers and it is an odd grouping of cities that have little in common and some of which are unexplainable. With their median values, they are as follows:
1. Reno, Nevada (where we live) at $524,500
2. Racine, Wisconsin at $289,200
3. Greenville, South Carolina at $323,950
4. El Paso, Texas at $240,925
5. Clarksville, Tennessee at $322,650
6. Torrington, Connecticut at $425,000
7. Kahului, Hawaii at $891,500
8. Canton, Ohio at $186,900
9. Claremont, New Hampshire at $327,000
10. Bellingham, Washington at $499,450
As you can see, these cities don't really have much in common. Reno is easy to understand as many people are moving over from California to escape the high cost of living and very high taxes. My guess is that retired people are driving these all cash sales and or we could be seeing a generational transfer of wealth from Baby Boomers to their children and grandchildren. All cash buyers make it harder for others in these markets to compete because a seller will always take an all cash deal over a deal requiring a mortgage, all other factors being equal. In any case, there is a lot of money floating around driven by a sky rocketing stock market.
