While All-Cash Sales are Down Nationally, Florida leads
Redfin, the highly respected Seattle based corporation, operating in over 100 markets in the U.S. and Canada specializes in residential real estate brokerage and mortgage origination services.
Under any market conditions, those who can pay cash for a home have the advantage of not having monthly mortgage payments with the attendant, substantial interest charges, which in essence, makes the home less expensive to purchase. But for the majority of buyers a mortgage is a valuable tool toward home ownership.
Redfin recently completed a study which found that nationally just under one-third (32.6%) of home buyers paid all-cash for their home in 2024. This is down just slightly from 35.1 in 2023 and the lowest rate since 2021. But it’s still higher than pre-pandemic days when the rate ranged from 25% to 30%. The study encompassed 40 of the most populous U.S. metro areas.
One reason for the dip is investors (who often pay cash) bought fewer homes in 2024 following a surge in purchases during the pandemic due mainly to steeply falling prices. Also, during the pandemic there was a rise in buying a home at discounted prices by those who intended to flip the home for a quick profit.
Cash buyers make for a more competitive housing market because sellers don’t need to be concerned that a buyer will be turned down for a mortgage or that the bank’s appraiser will determine that the asking price is too high. This puts pressure on buyers who need a mortgage to give a heftier offer. But while there are recent indications (as stated above) that fewer homes are being bought with cash than in the past few years, some experts don't expect the market to soften much more.
But the percentage of cash buyers is still relatively high. “One reason is because when housing is expensive, as it is now, wealthier Americans who can afford to pay cash are more likely than others to be buying homes,” Redfin Senior Economist Sheharyar Bokhari said, “We are unlikely to see the share of all-cash purchases fall much lower in 2025, unless mortgage rates drop enough to drive a significant increase in sales.”
Florida metro areas led the nation in all-cash sales in 2024, where West Palm Beach led the way with a whopping 49.6 percent paying cash. Jacksonville came in second at 40.6%. Cleveland was third at 40%, closing out the top five were Fort Lauderdale (38.9) and Miami (381). Indeed, the Sunshine State held four of the top five positions.
The lowest percentage of all-cash buyers were San Jose California (18.1%), Oakland CA. (18.6&%), Seattle (20.6%), Virginia Beach (21.9%), and Los Angeles (22.2%).
Finally, cash buyers (other than the affluent) are often people who have been in their homes for a long while, earning equity. They may also be moving from high-price locations to more affordable ones, according to Jessica Lautz, National Association of Realtors deputy chief economist and vice president of research.