FREDERICK COUNTY, Md. (DC News Now) — Many norms have been changed by the pandemic. One such example is the current spike in homebuyers paying all cash.
“It was the traffic. Traffic was always backed up every day, so we decided to move here, and it’s quiet,” said Gil Grillot of Frederick County.
Grillot moved to Frederick County from Montgomery County about three years ago.
“There were so many housing opportunities. Frederick is booming,” Grillot said.
“The reason we moved away from Montgomery County is I wanted to get away from I-270. I drove I-270 for 40 years, morning and night. I was just so tired of it,” Grilott said.
The market is booming so fast, in fact, that many buyers are paying cash for new homes. Last year, 40 percent of homes in the county were all cash purchases. Rising interest rates drove many to opt out of financing.
“I see the trend right now,” said Ionela Raduinea with Samson Properties in Frederick. “All these new offers are cash. That can be a win-win.”
Raduinea said that cash payments can often help buyers reach a quick settlement on the deal.
Research by Redfin Realty showed that those buyers are typically white, wealthy and older.
In both Frederick and Montgomery counties, over the past five years, the number of all-cash buyers has more than doubled.
Real estate experts noted the disparity in pricing between the Frederick and D.C. markets. In D.C. a home goes for $211 per square foot. In Frederick, a home is $488 per square foot.
The number of first-time home buyers is now the lowest it has been in 40 years.