Cash Buyers vs First-Time Home Buyers

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Cash Buyers vs First-Time Home Buyers

Boston Condos for Sale and Apartments for Rent


First-time Boston condo buyers looking for a Boston Seaport condo or Back Bay home are often competing with older homebuyers who want to downsize. This has been the trend for the past few years.

The younger buyer sometimes has an advantage because they don’t have a home to sell and some older buyers have an advantage because they can pay cash.

The number of cash purchases is up. In 2021 about 30% of home purchases were cash which is up from 2020 when it was less than 25%.

There are also investors who can pay cash and the number of Boston condos for sale that is being bought by investors is rising.

The only upside to the situation is that when people downsize they often have a house to sell.

What will the future Boston condo market be like?

In the next 8 to 10 years we should start to see a shift in the housing market as more baby boomers reach their 80s and in twenty years there may even be more condominiums for sale than there are Boston condo buyers

Boston Condos for Sale and the Bottom Line.

The best way for buyers to navigate the housing market this spring is to be flexible and ready to act quickly. Take advantage of holiday weekends and stay in town and make an offer. Affordable Boston condos for sale often go on the market on Thursday with offers due by Sunday.


I have noticed that investors have reemerged in the Boston condo market (condos below $400,000), triggering in some cases bidding wars in some neighborhoods. For example, over the holiday weekend, Vilma in my office, had several offers on a small studio located at 21 Beacon Street, which prompted interest from both first-time homebuyers and cash investors.

With Boston condo prices down from their peaks, all-cash investors appear to be snapping up the cheapest properties and helping clear out the excess supply of low-priced Boston condos on the market. They’re betting that the market has hit bottom or will soon.

But that’s of little consolation to traditional home buyers, who find themselves at a disadvantage because their offers usually hinge on financing contingencies, appraisals and home inspections. I also noticed some sellers will actually accept a lower sales price over a traditional mortgage offer.

Just curious, has anyone else been noticing this trend?

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