An analysis of citywide sales data by The Real Deal shows that all-cash deals make up a more significant portion of the New York City market than at any time on record, accounting for 60% of condo sales in Manhattan this year. Cash buyers have also successfully scooped up 37% of condo deals in Brooklyn this year and 40% in Queens. All three figures are a record since at least 2018.

This trend can be attributed to rising mortgage rates above 6%, raising borrowing costs and limiting the supply of for-sale homes. Those dynamics increase all-cash buyers’ advantage because sellers have the leverage to wait for a cash buyer and not risk a contract falling through because a bidder can’t get a mortgage.

Buyers planning to get a mortgage can level the playing field with all-cash bidders by waiving financing contingency, which is a promise to close whether or not they get financing. But this comes with risk. Failing to close could mean losing the deposit put down at the contract signing, which is 10% of a home’s price tag.

TIP: Newly built apartments are good places to start for all-cash buyers looking for the best bargain, as the immediacy of a cash purchase can help developers save on carrying costs.

(source: therealdeal.com, picture: kostiantyn l)