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Key Takeaways
- All-cash buyers made up almost 33% of all housing sales in the first half of 2025, continuing a pandemic-era trend that has frustrated other buyers, according to a Realtor.com report.
- High mortgage rates have made it difficult for many would-be buyers to break into the market, giving an advantage to buyers with significant housing equity or high wealth.
- More than half of homes priced above $2 million were paid for in cash, while two-thirds of homes sold under $100,000 were also all-cash purchases.
There’s one way to beat the sky high mortgage rates: Pay in cash.
A new report shows that’s what an outsize share of buyers are doing, extending a pandemic-era trend that’s contributed to the affordability crisis that has stalled the housing market.
All-cash transactions made up nearly a third of home sales in the first half of 2025, a Realtor.com report found. While down slightly from last year, all-cash purchases are still well above pre-pandemic levels that made up 28.6% of transactions.
The trend presents another challenge for buyers in an increasingly unaffordable housing market, especially first-time homebuyers. Pressured by mortgage rates that hovered above 6.5% over the first half of the year, buyers also encountered limited housing inventory that kept prices elevated. As a result, all-cash buyers are often winning bidding wars for houses, a problem that was particularly pervasive during the pandemic.
Why This is Important for Homebuyers
High costs, limited housing supply and high mortgage rates make the real estate market extremely challenging. All-cash buyers who can win bidding wars and complete a purchase quickly make it harder for shoppers who rely on a mortgage to finance a home.
“High-wealth buyers, investors, and those with significant equity can move quickly and often win out in competitive situations,” said Danielle Hale, chief economist at Realtor.com. “For traditional, mortgage-reliant buyers, this can add another hurdle in an already challenging affordability environment.”
All-Cash Buyers Are Snapping Up Cheap And Expensive Homes
Cash purchases have created a U-shaped pattern in home buying, the report showed. Two-thirds of homes priced under $100,000 are purchased with cash, while four-in-ten sales over $1 million were all cash. More than half of homes priced over $2 million were bought with cash.
Older homeowners and buyers with significant equity commonly pay in cash, the report found. And while high-wealth buyers also make up a significant portion of cash purchases, they are less influenced by borrowing costs, often looking at broader financial considerations.
“Cash sales underscore the wealth concentration shaping today’s housing market,” said Hannah Jones, senior economic research analyst at Realtor.com. “If mortgage rates fall, we could see financed buyers regain ground, but for now, cash remains a powerful competitive advantage.”
The reasons buyers pay in cash can vary. All-cash sales in Mississippi are likely a result of low housing costs and limited access to credit, the report found. Meanwhile, all-cash sales in places like Montana and Idaho are the result of an influx of out-of-state buyers, while all-cash transactions in Hawaii and Maine are fueled by vacation home purchases.
