More Buyers Snapping Up Homes with Cash

Updated: Tuesday, 21 Jun 2011, 5:17 PM MST
Published : Tuesday, 21 Jun 2011, 5:17 PM MST

PHOENIX - It's the lone bright spot of the deepening housing crisis -- people with deep pockets buying up homes and paying for them with cash.

Realtors say the reason this is happening is because the price is right and people have cash after not spending for a couple years.

Morrie Chernis and his wife just bought a home sweet home, an 18-hundred square foot luxury condo in the heart of Scottsdale. The best part is they paid cash.

"We sold our home and we had a lot of cash and where else do you put cash today in the bank at a half of percent or less, no it seemed to me at our age that would be a reasonably safe place," says Chernis.

Valley realtor Doug Crisan says the Chernis' are part of a growing trend. Homeowners, not investors, are saying goodbye to traditional home loans and paying all cash.

"First and foremost it's that people have been sitting on the sidelines for a while, they've been waiting to see that the market is actually stabilized," says Crisan from Sage Condo Development.

And they've saved cash along the way.

Crisan also says buyers are tired of dealing with lenders who have tightened mortgage standards. Plus, the deals are too good to pass up.

"The reality of it is there's great value in the marketplace."

Realtor Joshua Roubal has noticed the same trend, but with foreign buyers from Canada and Australia.

"They're taking advantage of really two things. One is the borrowing power of the country they're coming from that, coupled with a strong exchange rate that they have," says Roubal.

The Chernis' are just thrilled. They found the right place at the right price for cash.

"I do think it's much sounder than buying one with no cash," says Chernis.

Realtors say homes are selling for about half of what they did at the peak, and buyers are taking advantage.

http://www.myfoxphoenix.com/dpp/money/m ... -6-21-2011