Slightly under one-third (32.6%) of home purchases in 2024 were all-cash transactions, according to new data from Redfin (NASDAQ: RDFN). This is down from 35.1% in 2023 and the lowest share since 2021.
Prior to the pandemic, the share of all-cash sales ranged from 25% to 30%. Redfin attributed last year’s decline to a smaller quantity of investors making purchases compared to previous years.
“The rate of all-cash sales remains high because when housing is expensive – like it is now – wealthier Americans who can afford to pay cash are more likely than lower-income Americans to be buying homes,” said Redfin Senior Economist Sheharyar Bokhari. “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 metros had the highest share of cash homebuyers out of the markets Redfin analyzed, most notably in West Palm Beach (49.6%) and Jacksonville (40.6%). California’s Bay Area had the lowest share of all-cash buyers with San Jose (18.1%) and Oakland (18.6%).
