Michigan has seen a sharp spike in the number of people paying cash for homes.
Last month, cash sales represented 49% of the home sales in Michigan.
Nationwide, 42% of home sales in November were all cash.
Daren Bloomquist is with Realty Trac. He says investors are trying to gobble up a lot of newer, starter homes
“These investors are seeing a window of opportunity when home prices in many markets have been undervalued, especially compared to rent,” says Bloomquist.
Bloomquist says most investors plan to rent the homes for a few years with hopes of selling them at a profit later.
He expects, as home prices in Michigan rise, investors’ interest may wane, leaving more of the market next year for buyers who are looking for a home to live in.