When I bought my current house a few years ago, we were up against several other buyers, one with an all-cash offer.
Cash offers were pretty common back then. In a red-hot market, they can help buyers stand out, offering sellers a faster, more efficient deal without all the risk that comes with mortgage financing.
Though we eventually got lucky (the seller chose our offer after we upped it by another $5,000), that’s not the case for many who go up against all-cash buyers. In fact, over 40% of real estate agents say an all-cash offer is the best way to win a house, according to Zillow (ZG).
Fortunately, that’s not something today’s buyers have to worry about as much as I did back then.
In fact, all-cash offers are actually nearing their lowest point in years.
Redfin shows all-cash buyers are backing off
New data from real estate brokerage Redfin (RDFN) shows that less than 29% of all home shoppers are buying homes in cash these days. That’s down notably from 2023, when all-cash buyers peaked at a whopping 35% of the pot.
There’s a lot behind the shift, but it largely comes down to this: It’s now a buyer’s market in much of the U.S.
Part of that is thanks to rising supply.
April saw a surge in new listings, with for-sale inventory up nearly 9% over March and 1% over a year ago. In the Midwest, listings jumped a whopping 11.5%, according to Realtor.com.
When listings rise beyond the number of buyers on the market, it shifts into a buyers’ market, making conditions less competitive on the whole.
“With hundreds of thousands more home sellers than buyers in the market, fewer house hunters feel inclined to make cash offers to stand out in bidding wars,” writes Redfin data expert Dana Anderson.
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There’s also the larger economy to think about. With inflation now at its highest point in three years (3.8%, according to the Bureau of Labor Statistics) and gas prices soaring, consumers are getting pickier about how they spend their cash.
As Redfin agent Beth Behling explains, “Cash buyers have retreated. Buyers are feeling jittery about the economy, and it’s not financially comfortable to drop a huge chunk of money into a home. They may prefer to have more cash on hand.”
Photo by ingwervanille on Getty Images
A brief history of all-cash house purchases
- All-cash home buyers bottomed out in 2020 during the height of the pandemic, according to Redfin. They peaked at 35% in 2023.
- As of March 2026 data, the share of home purchases coming from all-cash buyers is 28.8%. One year ago, it was 29.8%, and five years ago, it was just 26%.
- All-cash offers are most common in areas with lots of retiree buyers or second-home buyers, who can use proceeds from a previous home sale toward their new home purchase.
- Investors are also common all-cash buyers. Investor home purchases recently fell to their lowest point since 2020.
- The metros with the most all-cash purchases are Cleveland, Ohio, and West Palm Beach, Fla. Both are seeing cash buyers making up more than 51% of all purchases in the area. West Coast markets are least likely to see all-cash offers. In Seattle, just 17.6% of home purchases were in cash in March.
What fewer cash buyers means if you’re buying or selling a house
Fewer cash buyers is good news for house hunters. It indicates a less competitive market and fewer bidding wars.
And since bidding wars push up offers, it can eventually lead to lower home prices, too.
“Compared to last year, 2026 has seen both fewer price cuts and lower median list prices, suggesting sellers have internalized the generally more buyer-friendly market conditions and are adjusting price expectations before rather than after listing,” writes Jake Krimmel, Realtor.com senior economist.
The median listing price in April was $425,000, according to Realtor.com.
That’s down 1.4% from a year ago and the ninth consecutive month list prices have fallen or remained flat.
“The balance of the market continues moving in a more buyer-friendly direction,” Krimmel says. “While it’s too early to be fully certain the spring housing market has weathered the storm, there’s renewed reason for cautious optimism.”
For sellers, it may actually be good news, too. While all cash typically means a speedier closing sale process, research out of the University of California San Diego shows that cash buyers actually pay about 10% less than mortgaged buyers. That’s more than $4,000 on a median-priced house.
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