Cash Still King: One in Three Homes Bought with Cash in 2025

Core Insights - Nearly one in three homes sold in the first half of 2025 were purchased entirely with cash, indicating a strong influence of cash buyers in the housing market [1][2] - The share of all-cash transactions is 32.8%, slightly down from the previous year but still above pre-pandemic levels of 28.6% [2] - Cash buyers dominate at both ends of the market, with two-thirds of homes under $100,000 and over 40% of homes above $1 million being cash purchases [3] Cash Buyer Dynamics - Cash buyers are primarily high-wealth individuals, investors, and those with significant equity, allowing them to act quickly in competitive situations [3][4] - The prevalence of cash buyers varies significantly across states and metropolitan areas, influenced by local market dynamics and buyer demographics [5] Regional Insights - States with the highest cash share include Mississippi (49.6%), Montana (46.0%), and Idaho (45.0%), often reflecting lower home prices or affluent second-home buyers [6] - Major metropolitan areas with high cash shares include Miami (43.0%), San Antonio (39.6%), and Kansas City (39.2%), driven by various factors such as international demand and affordability [7] Year-over-Year Changes - States like West Virginia (+5.3%) and New Mexico (+4.0%) saw significant increases in cash share, while Hawaii (-4.0%) and New Hampshire (-3.7%) experienced declines [9] - Texas metros, particularly, have shown notable year-over-year gains in cash transactions, attributed to in-migration and renewed investor activity [9] Future Outlook - While cash buyers currently hold a competitive advantage, a decline in mortgage rates could shift the balance, potentially bringing more financed buyers back into the market [10][11]