A recent report from Coldwell Banker Real Estate indicates that this year, more affluent home buyers are opting to pay in cash for their purchases.
According to their “Middle Age Report for 2025,” conducted with input from over 200 individuals, Coldwell Banker Luxury Property Specialists observed a notable uptick in wealthy clients using cash for home acquisitions.
Specifically, around 34.1% noted a “slight increase,” while 16.6% mentioned a “significant” rise in cash transactions.
Senior Vice President of Research, Lawrence Yun, pointed out that rising mortgage fees are pushing buyers toward cash payments. He remarked, “With high mortgage costs, many wealthy individuals are choosing to liquidate some assets to purchase properties outright.”
A shift in focus toward personal savings and investments appears to be driving this trend, as these wealthy buyers target luxury homes.
Interestingly, about 45.4% of industry experts believe cash purchases have remained steady this year, while only 3.9% noted that their clients were moving away from cash-only transactions.
Moreover, approximately 68% of Coldwell Banker agents mentioned that the affluent buyers they’re working with are either holding onto or increasing their property investments.
Yun acknowledged the prevailing macroeconomic and geopolitical uncertainties that have prompted many wealthy individuals to pivot to real estate. “It’s intriguing how, unlike other investments that are faltering during these times, real estate seems to offer a resilient option,” he expressed, emphasizing its potential as a hedge against inflation.
Despite Coldwell Banker maintaining its stance on what wealthy buyers value in a home, there’s a shift towards prioritizing aspects that generate long-term value rather than mere aesthetic qualities.
The report highlights that over $30 million worth of assets and many buyers looking in the $100,000 to $5 million range are engaging with the luxury real estate sector, with some being particularly cautious given economic fluctuations.
Michael Altneu, vice president of Coldwell Banker Global Luxury, noted that while the luxury market is “demonstrating resilience” in 2025, various factors have tempered greater rebounds in activity.
According to data from the Luxury Home Marketing Data Institute, sales of luxury detached homes rose by 1.7%, and their prices increased by an average of 1.8% from the end of May to late May. Conversely, attached luxury properties saw an 8.1% drop in sales, even while their median prices climbed by about 8.4%.
Overall, both categories of real estate reported increased supply within the first five months of the year, with luxury single-family homes experiencing a 19.6% rise and attached properties growing by 14.8%.
The U.S. market also experienced a significant influx of various types of homes, exceeding one million listings in May, as detailed in a report from Realtor.com earlier in June.
