ARE CASH DEALS A SIGN OF INCREASED CONFIDENCE?

In my business over the past year I have seen an increase in the number of buyers choosing to pay cash as opposed to obtaining a mortgage. All but one were deals involving vacation or investment homes in the Kent Island area of Queen Anne’s County Maryland. Several were over a
million dollars
So why with rates so low and prices at their lowest in years are buyers using cash?

Several reasons come to mind. First, if a seller has had a home on the market for an extended period of time and has substantial equity they may leap at a lower offer of cash over a higher offer that involves home sales or financing contingencies that may or may not result in settlement. Cash is king, most often a cash buyer can get a better deal.
Additionally with no mortgage there is no Property Mortgage Insurance which can be thousands of dollars and things like costly appraisals are not mandatory and are done at the buyer’s discretion.
I think the increase in cash deals could also be an indication of increased confidence as people with substantial means are not feeling the need to hoard cash the way they might have a year or two ago.