Cash is often king. Buyers who can make an all-cash offer on a home can stand out when competition is tight. Cash purchases tend to pose less risk that a deal will fall through from a low appraisal, have fewer financing hang-ups, and tend to make for faster transactions.
All-cash deals comprised 20% of sales over the first two months of this year, up about 5% compared to a year ago, according to a new analysis from realtor.com®. The majority of cash purchases tend to be investors, people looking for second homes, or international purchases. Also, older buyers are more likely to pay cash since they can often use the money from selling their previous residence, according to realtor.com®’s analysis.
“If you have to compete with other potential buyers, an all-cash offer puts you in a more competitive spot,” says Danielle Hale, chief economist at realtor.com®. It “can make you a more attractive buyer.”
Realtor.com® pinpointed the following metro areas with the highest increases in cash sales in January and February of this year compared to a year earlier (pre-pandemic). The following areas had the highest number of cash sales in that period:
1. Reno, Nev.
- Share of cash sales in January and February: 51% (up 29% from a year earlier)
2. Racine, Wis.
- Share of cash sales in January and February: 40% (up from 18%)
3. Greenville, S.C.
- Share of cash sales in January and February: 38% (up from 14%)
4. El Paso, Texas
- Share of cash sales in January and February: 15% (up from 13%)
5. Clarksville, Tenn.
- Share of cash sales in January and February: 30% (up from 12%)
6. Torrington, Conn.
- Share of cash sales in January and February: 41% (up from 11%)
7. Kahului, Hawaii
- Share of cash sales in January and February: 40% (up from 11%)
View the full list of metros with the highest cash sales at realtor.com®.
Source: “Money Talks in These 10 Metros Where All-Cash Buyers Are Scooping Up Homes,” realtor.com® (May 17, 2021)
