Examining the Cash-Only Price Discount and the Driving Forces of Cash-Only Transactions in the Housing Market

This paper investigates the effects of cash-only transactions on residential property values before, during and after financial crisis. Using a comprehensive database sales in Tallahassee, FL from 2006 to 2015 propensity score matching model, we find that, average, transaction is associated with 4.9% discount overall housing price. Further analyses reveal that present only lower- price segment Although are more common for distressed, investor-purchased rental properties, no significant these categories except lower-priced segment. Overall, demonstrate discounts less contingent distressed status, but so driven by increased supply attractiveness homes investors.