10 Cities Where Homebuyers Are Most Likely to Pay All Cash

·3 min read

The housing market is cooling rapidly and bidding wars may be fading away, but all-cash home purchases are still more common than they were before the pandemic.

New data released by real estate brokerage Redfin shows that roughly one-third of home purchases in the U.S. were bought with cash in July. That’s up from 27.5% the year before and higher than nearly any point since early 2014. (The one exception was a slightly higher peak for cash buyers this past February.)

All-cash offers surged in popularity during the early days of the pandemic, when a crush of demand and a shortage of inventory forced potential buyers into fierce competition. It was common for homes to sell well above their asking prices, too.

While house prices aren’t growing nearly as fast now, homebuyers in many cities are still sticking with cash. Redfin attributes the staying power of the all-cash offer to the rapid spike in mortgage rates from around 3% at the beginning of the year ago to more than 6% this week — their highest level since the financial crisis.

“Many first-time homebuyers are finding the door to homeownership is closed for this season” largely due to higher mortgage rates, Realtor.com Senior Economist George Ratiu wrote in a recent blog post. Ratiu pointed to data showing that the buyer of a median-priced home today’s rates can expect a monthly payment of $2,100 — 66% higher than this time last year.

Cash buyers don’t have to worry about the rising borrowing costs that have pushed other potential buyers out of the market. Redfin also notes that the majority of purchases by housing investors are made with cash.


November 2, 2022

With uncertainty surrounding the upcoming Federal Open Market Committee meeting, now is the time to get ahead of potentially rising Mortgage Rates. Click on the button and take the first step today.

View Rates

10 places with the highest rate of cash home sales

Here are the top 10 places where cash-purchases are most common, along with the portion of home sales that cash purchases comprise, according to Redfin’s analysis of data from July:

  1. Nassau County, New York: 66.5%

  2. West Palm Beach, Florida: 56.4%

  3. Jacksonville, Florida: 45.5%

  4. Milwaukee, Wisconsin: 45.3%

  5. Fort Lauderdale, Florida: 43.3%

  6. Orlando, Florida: 42.5%

  7. Atlanta, Georgia: 42.4%

  8. Cleveland, Ohio: 42.1%

  9. Charlotte, North Carolina: 41.8%

  10. Tampa, Florida: 41.3%

Money Moves

Every Saturday, Money real estate editor Sam Sharf dives deep into the world of real estate, offering a fresh take on the latest housing news for homeowners, buyers and daydreamers alike.

Sign Up

More from Money:

The Best Time of the Year to Buy a House Is Coming Soon

8 Best Mortgage Refinance Companies of 2022

For the First Time in 2 Years, People Think Home Prices Will Fall

© Copyright 2021 Ad Practitioners, LLC. All Rights Reserved.
This article originally appeared on Money.com and may contain affiliate links for which Money receives compensation. Opinions expressed in this article are the author's alone, not those of a third-party entity, and have not been reviewed, approved, or otherwise endorsed. Offers may be subject to change without notice. For more information, read Money’s full disclaimer.