flexiblefullpage - default
Currently Reading

All-Cash Purchases Made Up One-Third of Home Sales in July

billboard - default
New-Home Sales

All-Cash Purchases Made Up One-Third of Home Sales in July

The share of U.S. homes bought with all cash is still above pre-pandemic levels after a surge in all-cash purchases during a two-year housing boom

September 16, 2022
Small white house stacked on top of bundles of cash
Image: Stock.adobe.com

Around one-third of all U.S. home purchases were paid for with all cash in July, down slightly from the eight-year high reached in February, but still a historically high year-over-year gain of 27.5%, according to Redfin. All-cash purchases surged in popularity during the mid-pandemic homebuying boom as affluent buyers sought out ways to avoid high interest payments and to stand out among a competitive buyer pool.

As a result, the metro areas with the highest share of all-cash purchases are also home to some of the most affluent buyers in the country. Three of the five metro areas with the most all-cash home purchases were located in Florida, and Hampton buyers also made Long Island a hotspot for cash purchases in July.

All-cash purchases jumped in popularity last year because they allowed buyers to stand out among fierce competition: Bidding-war rates reached record highs in early 2021 due to sub-3% mortgage rates and remote work driving homebuyer demand. Remote work has also given more Americans the option to use all cash, as it allowed a record share of homebuyers to relocate, often from expensive to affordable parts of the country. U.S. home values have skyrocketed since the start of the pandemic, which means Americans who sell a home in a pricey place like San Francisco may use equity to pay cash in a more affordable area like Las Vegas.

Read more

Related Stories

New-Home Sales

Consumer Confidence Reaches 5-Month High Despite Recession Fears

America's big spenders sprang back into action in September, but when it came to home purchases, consumers weren't quite so confident

Market Data + Trends

U.S. Home Prices Could Fall 20% By Next Summer, Experts Say

The housing market is in the throes of a major post-pandemic slowdown, and according to some of the nation's top economists, that could lead to substantial price drops in the year ahead

Housing Markets

Sun Belt Buyers Are Backing Out of Home Purchases

Homebuyers in popular Sun Belt cities are second guessing home purchases amid surging mortgage rates and slower activity from competing buyers

boombox1 -
native1 - default
halfpage2 -

More in Category

native2 - default
halfpage1 -

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.

Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.