House hunters who make an all-cash offer on a property typically have a significant advantage over competitors who need capital, as the sale is less likely to fall through.
And cities in the southwest topped the list for all-cash transactions.
Nearly three-quarters of homes purchased in Albuquerque, New Mexico, were paid for entirely in cash, bypassing the often nerve-wracking mortgage process altogether.
In the high desert city of more than 500,000 people, famous as the setting for AMC's “Breaking Bad,” 71% of home purchases will be all-cash purchases as of October 2024, according to the latest numbers available from Realtors. It is said that it was done. .com®.
At the time, the median list price for New Mexico's largest metro was $399,900.
The percentage of all-cash home purchases in Albuquerque was more than double the national average of 34.6%.
“Albuquerque is relatively affordable, so it's easy to buy with cash,” said Joel Varner, senior economist at Realtor.com.
“It’s also an attractive market for investors…and investors can typically pay cash or secure their own financing outside of a traditional mortgage.”
Berner added that Albuquerque has long led the nation in all-cash purchase rates, and “that gap is widening.”
West and South lead in cash transactions
The top 10 cities where at least 40% of home purchases were paid all in cash were all located in the South and West, including three in Florida, two in Texas, New Mexico, South Carolina, There was one city each in Nevada and Alabama. And Tennessee.
That's because real estate in these parts of the country is generally more affordable than in other market areas, Berner said.
Second behind Albuquerque is Myrtle Beach, South Carolina, where all-cash home purchase transactions accounted for just under 56% of residential real estate purchases during the same period, with a median list price of $340,000.
In Northport, Florida, located between Tampa and Fort Myers along the Gulf Coast, more than 47% of home purchases were made with all cash in the fall, and the median list price hovered around $474,224, ranking it among real estate agents. He took 3rd place. .com listings.
Barner said properties in South Carolina and Florida are attracting wealthy home hunters looking to acquire beachfront condos as second homes.
According to statistics, as of January 2024, the percentage of home buyers who made all-cash offers reached 32% nationwide, the highest percentage in 10 years. National Association of Realtors Report Since March of last year.
All cash offer conquers all
In contrast to mortgage transactions that can take a month or more, all-cash transactions tend to close faster, sometimes in as little as two weeks.
For these reasons, sellers tend to prefer potential buyers who make an all-cash offer over potential buyers who require the involvement of a mortgage lender.
It is important to note that the majority of home buyers across the United States still rely on financing to purchase a home.
Real estate investors and vacation home buyers make up the majority of all-cash buyers.
Repeat buyers are also more likely to prefer an all-cash offer than first-time buyers because they can use the money from the sale of a previous property to pay for their next purchase.
US cities with the highest percentage of all-cash home purchases
1. Albuquerque, New Mexico
Full cash purchase ratio: 71.4%
Median list price: $399,900
2. Myrtle Beach, South Carolina
Full cash purchase ratio: 55.8%
Median list price: $340,000
3. Northport, Florida
Full cash purchase ratio: 47.4%
Median list price: $474,224
Full cash purchase ratio: 47%
Median list price: $520,000
Full cash purchase ratio: 43.8%
Median list price: $429,900
Full cash purchase ratio: 43.2%
Median list price: $369,450
Full cash purchase ratio: 42.4%
Median list price: $525,000
Full cash purchase ratio: 41.6%
Median list price: $475,000
Full cash purchase ratio: 40.4%
Median list price: $299,947
Full cash purchase ratio: 40.3%
Median list price: $334,900
