Happenings In the News

All-Cash Home Sales on Rise as Interest Rates Spike

In March, allcash home sales accounted for 16.8% of transactions in Salt Lake County, slightly lower than the 17.2% recorded in March 2022. Nationally, all-cash sales represented 27% of transactions during the same period. Allcash sales jumped during the pandemic years, when the real estate market was intensely competitive and mortgage rates were low. Offering cash became a strategic approach to increase the likelihood of successfully closing on a home, especially when faced with multiple offers, explained Nadia Evangelou, senior economist at the National Association of Realtors®. Presently, the significant proportion of cash purchases reflects a growing trend among buyers who have the financial means to avoid interest payments due to the high borrowing costs associated with purchasing a home. According to Freddie Mac, the average 30-year fixed-rate mortgage currently stands at 6.57%, compared to 5.10% one year ago.

As U.S. Population Ages, Utah is Nation’s Youngest State

The U.S. population in 2020 was older and had fewer children under age five than in 2010 or 2000, according to the 2020 Census Demographic and Housing Characteristics (DHC) report. The baby boom generation (born 1946-1964) and millennials (born 1982-2000) — the two largest U.S. cohorts in 2020 — both continued to age over the past two decades. At the same time, smaller cohorts of children were born from 2010 to 2020. In contrast, Utah was the nation’s youngest state in 2020, with the lowest median age (31.3 years) and the country’s highest share (29.0%) of population under age 18. But Utah’s population both grew and aged during the century’s first two decades. The state’s population rose 46.5% (from 2.2 million in 2000 to 3.3 million in 2020). At the same time, the state’s median age increased by 4.2 years (from 27.1 to 31.3) and the share of its population age 65 and over increased from 8.5% in 2000 to 11.7% in 2020.

NAR Praises High Court Rulings

National Association of Realtors®

President Kenny Parcell issued the following statement in response to the Supreme Court’s favorable rulings for property rights in Tyler v. Hennepin County and Sackett v. EPA:

“NAR applauds the Supreme Court for both rulings further protecting the rights of property owners. Tyler v. Hennepin County, which NAR outwardly supported, confirms that the equity homeowners build in their properties is a constitutionally protected right and cannot be unduly or unfairly seized by the government. We also appreciate the clarity provided by the Sackett ruling, which helps property owners utilize their land to the fullest extent possible. This ruling has lifted a burden from homebuilders across the country, reinforcing that the government should not create excessive barriers in the homebuilding sector, especially when the United States currently has a housing shortage of 5.5 million units.”

In March, NAR, along with the American Property Owners Alliance and the Minnesota Realtors® filed an amicus brief in support of Tyler v. Hennepin County and the property owner’s entitlement to the surplus equity, arguing the state statute effectuates an unconstitutional taking of private property under the Fifth Amendment. The Sackett v. EPA ruling brings more clarity to the rules and regulations on the building on personal land under the scope of the Clean Water Act (CWA). NAR is part of ongoing litigation related to an EPA rule defining Waters of the United States (WOTUS) under the CWA, which will be directly impacted by this decision.