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Redfin Reports Nearly One-Third of U.S. Homes Are Bought With Cash, Well Above Pre-Pandemic Levels

For buyers taking right out loans, the share of homes purchased using FHA and VA loans are both up slightly from record lows because the market cools down

SEATTLE–(BUSINESS WIRE)–(NASDAQ: RDFN) Nearly one-third (31.4%) of U.S. home purchases were covered with all profit July, in accordance with a new report from Redfin (, the technology-powered property brokerage. Thats close to the eight-year high reached in February or more from 27.5% per year earlier. The share of all-cash purchases jumped in early 2021 through the pandemic-driven homebuying frenzy and contains remained elevated since that time.

All-cash purchases are prevalent with todays affluent buyers largely because mortgage rates have doubled from the year ago, reaching 6% in mid-September. Buyers who dont use loans avoid high interest payments that exacerbate home prices, which remain near record highs even while the housing marketplace slows.

All-cash purchases jumped in popularity this past year since they allowed buyers to stick out among fierce competition: Bidding-war rates reached record highs in early 2021 because of sub-3% mortgage rates and remote work driving homebuyer demand. Remote work in addition has given more Americans the option to utilize all cash, since it allowed an archive share of homebuyers to relocate, often from expensive to affordable places. U.S. home values have skyrocketed because the start of pandemic, this means Americans who sell a house in a pricey place like SAN FRANCISCO BAY AREA might use equity to cover cash in a far more affordable area like NEVADA.

Investors may also be adding to the all-cash boom. Property investors bought up an archive share of the U.S. housing stock in the fourth quarter of this past year, and their share has remained above pre-pandemic levels since that time. About three-quarters of investor home purchases are created with cash.

All-cash purchases are most prevalent in Long Island, NY and Florida

Three of the five metro areas with the best share of all-cash purchases come in Florida, partly as the state houses plenty of affluent buyers. But Long Island, NYwhich includes the Hamptonsis home to the best share of cash buyers, with two-thirds (66.5%) of home purchases manufactured in profit July. Next come West Palm Beach (56.4%), Jacksonville (45.5%), Milwaukee (45.3%) and Fort Lauderdale (43.3%).

A trio of expensive West Coast markets have the cheapest share of all-cash purchases, partly because high prices ensure it is more challenging to cover in cash: Oakland, CA (15.1%), San Jose, CA (16%) and Seattle (16.7%). Washington, D.C. (17.5%) and Pittsburgh (17.8%) round out underneath five.

FHA loans are somewhat popular than these were at the height of the marketplace, but less prevalent than prior to the pandemic

Despite the fact that all-cash purchases are in an eight-year high, most home purchases use loans. Conventional loans are the most common type, accompanied by Federal Housing Administration (FHA) and Veterans Affairs (VA) loans.

A lot more than eight in 10 (81.3%) of home sales which used a home loan in July took out the standard loan, down slightly from 81.9% per year earlier and down from the record most of 83.8% occur April.

Roughly 12% of home sales which used a home loan in July took out an FHA loan, flat from the year earlier but up from the all-time low of 10.4% in the spring. And 6.8% used a VA loan, up slightly from 6.2% per year earlier but up from the record low of 5.4% in spring 2021.

The spike in interest levels is pricing some buyers out from the market, but its also helping some buyers get into the marketplace because theres less competition, said Tampa Redfin agent Eric Auciello. Plenty of buyers who have been repeatedly outbid earlier this season are experiencing their offers accepted, including those using FHA loans, people that have smaller down payments and ones offering inspection and financing contingencies. In 2021, almost no buyers used FHA loans. The story is totally different now, as low down payments are no more a computerized deal breaker for sellers.

But FHA loans remain significantly less prevalent than these were pre-pandemic; about 17% of mortgaged purchases used them in 2019. Thats partly because despite the fact that the marketplace has cooled and FHA buyers are less inclined to face competition, homes remain very costly: The normal U.S. home that sold in July cost about 8% greater than a year earlier. Which means most of the individuals who would use an FHA loanlower-income, first-time homebuyersare priced out from the market.

VA purchases are about as popular as prior to the pandemic; roughly 7% of mortgaged purchases used them in 2019.

To learn the entire report, including charts, methodology and extra metro-level data, visit:

About Redfin

Redfin ( is really a technology-powered property company. We help people look for a spot to live with brokerage, instant home-buying (iBuying), rentals, lending, title insurance, and renovations services. We sell homes for additional money and charge half the fee. We also run the country’s #1 real-estate brokerage site. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Customers selling a house can take an instantaneous cash offer from Redfin or have our renovations crew fix up their house to sell for top level dollar. Our rentals business empowers millions nationwide to get apartments and houses for rent. Since launching in 2006, we’ve saved customers a lot more than $1 billion in commissions. We serve a lot more than 100 markets over the U.S. and Canada and employ over 6,000 people.

To find out more or even to contact an area Redfin agent, visit To understand about housing marketplace trends and download data, go to the Redfin Data Center. To be put into Redfin’s news release distribution list, email To see Redfin’s press center, just click here.

Redfin Journalist Services:

Erin Osgood, 206-588-6863

Source: Redfin

Released September 16, 2022

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