Chicago-area buyers paid cash for homes more than a third of the time, and the data released this week shows they paid 39 percent less per square foot during the first quarter of the year.
The findings are part of RealtyTrac’s Q1 2016 U.S. Cash & Institutional Investor Housing Market Report.
“While large institutional investors and other cash buyers continue to shrink as a share of U.S. home sales, these buyers still typically beat out traditional buyers using financing — in some cases even when they submit a lower offer for a home,” said Daren Blomquist, senior vice president at RealtyTrac. “Additionally cash buyers are often willing to take on properties in poor condition that may not readily qualify for standard financing, another reason why cash purchases normally sell at a lower price per square foot.
According to the report, 36 percent of home sales were for cash. RealtyTrac provides data-driven reports based on records of more than 130 million properties nationwide.