Cash is king when it comes to the current state of the market—and now we’ve got new data to prove it.
According to analysts from Redfin, all-cash sales have hit 30 percent so far this year. That’s up from 25.3 percent during all of 2020 and represents the largest share since 2014.
Additionally, investors, who often pay cash, are getting back into the market after a slower 2020. Home purchases by investors rose 2.7 percent year over year in the first quarter, marking the first period of growth since the pandemic began.
While Redfin notes that Florida ranks at the top of the list for markets with the most cash sales (in West Palm Beach, 52.6 percent of home purchases this year were paid for with all cash), California lands at the bottom of the list. Due in large part to having more costly property, many SoCal and NorCal markets barely break 15 percent in all-cash sales.
Both San Jose and Oakland had just 12.5 percent all-cash home purchases this year. Los Angeles and San Diego both saw 16 percent cash sales, while Sacramento had 17.7 percent and San Francisco 17.8 percent.