At a Glance:

• Nearly one-third (32.8%) of home sales in the first half of 2025 were all-cash purchases.¹
• Cash buyers are most active at both the lower end (under $100,000) and the higher end ($1 million+) of the price spectrum.²
• Real estate investors, second-home buyers, affluent buyers, and long-term homeowners are driving the trend of all-cash purchases in the housing market.
• Delayed financing offers a way for cash buyers to refinance within six months, restoring liquidity and connecting cash purchases to mortgage strategy.

In the first half of 2025, as mortgage rates hovered near multi-year highs, homebuyers with liquid assets played a significant role in shaping the housing market. In fact, all-cash purchases accounted for approximately one-third (32.8%) of all home sales in the first six months of the year, a slight decline from 33.4% during the same period in 2024.³ 

Cash buyers were active across a wide range of price points, particularly at the lower and upper ends of the market. Nearly two-thirds of homes sold for under $100,000 were purchased with cash, while more than 40% of homes priced above $1 million were also bought outright.⁴

Groups Driving Cash Purchases

The surge in cash purchases within the real estate market is primarily being driven by four key groups, each with unique goals and motivations. These include real estate investors seeking lucrative opportunities, second-home buyers looking for vacation retreats or seasonal residences, affluent buyers with significant financial resources, and long-term homeowners seizing the moment to sell their existing homes and move on to new opportunities.

Market Share of All-Cash Home Purchases

A variety of factors can influence the prevalence of cash-home purchases, including economic conditions, regional housing supply, demographic shifts, and investor activity. In the first half of 2025, the five states with the highest share of all-cash home purchases were:⁵
 

• Mississippi (49.6%)
• Montana (46.0%)
• Idaho (45.0%)
• Hawaii (44.9%)
• Maine (44.4%)

Among metro areas, the leaders were:⁶
 

• Miami (43.0%)
• San Antonio (39.6%)
• Kansas City, Kan. (39.2%)
• Birmingham, Ala. (38.8%)
• Houston (38.8%)
• St. Louis (38.1%)

Factors That Could Shift the All-Cash Trend

Brett Hively, Senior Vice President and Mortgage Capital Markets and Financial Strategist at Ameris Bank, noted that elevated mortgage rates likely contributed to the strength of cash buying. 

"If mortgage rates experience a notable decrease, cash buyers might opt to finance their purchase to take advantage of lower borrowing costs," Hively said. "This could lead to a decline in the share of cash sales from their current levels in markets across the country."

Cash Buying and the Role of Mortgage Financing

While cash purchases were a dominant force in early 2025, many buyers still considered how mortgage financing could support their broader financial goals—even after the transaction was complete. In some cases, buyers who closed with cash explored options to reintroduce financing later, depending on market conditions and personal liquidity needs.

One lesser-known option is delayed financing, which allows a buyer to refinance a home shortly after purchasing it with cash—typically within six months. This approach can help restore liquidity, support other financial priorities, or take advantage of changing rate environments.

“Cash buyers aren’t necessarily ruling out financing altogether,” Hively said. “Delayed financing offers a way to bring a mortgage into the picture after closing, especially when flexibility or liquidity becomes a priority.”

This strategy may be especially relevant for buyers who acted quickly in competitive markets but want to revisit their financing structure once conditions shift.


Sources:
^{1, 2, 3, 4, 5, 6} https://www.realtor.com/research/all-cash-sale-trends-h1-2025/

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Ameris Bank does not endorse nor is affiliated with the companies listed in this article.