Texas, October 22, 2025

News Summary

A recent analysis reveals that cash buyers accounted for 32.8% of home sales in the first half of 2025, highlighting their dominance in the current real estate market. Despite a small decline from the previous year, this percentage remains elevated compared to pre-pandemic levels. High-wealth households, investors, and second-home buyers are driving this trend, particularly evident in markets across various price ranges. Certain states like Mississippi and Texas exhibit higher rates of cash transactions, while financing barriers remain a challenge for lower-priced homes.

U.S. Housing Market Continues to See Cash Buyers Dominate Sales

Nationwide, nearly one in three homes sold in the first half of 2025 were bought with cash, representing 32.8% of home sales, according to a new analysis by Realtor.com. This trend highlights a continued preference for cash transactions in the real estate market, despite a slight decrease from the previous year’s figures. Even with the decline, the share of all-cash transactions remains significantly elevated compared to pre-pandemic levels, which were recorded at 28.6%.

Cash buyers mainly include high-wealth households, investors, and individuals purchasing second homes. The pandemic spurred a surge in all-cash purchases as investors entered the market to compete for limited listings. Cash buyers are demonstrating a heightened level of influence today compared to the pre-pandemic period, further solidifying their role in the current housing landscape.

Prevalence Across Price Ranges

The analysis reveals that cash purchases are prevalent across various price ranges. For instance, two-thirds of homes priced under $100,000 were purchased with cash. Additionally, over 40% of homes sold for more than $1 million were also cash purchases. Notably, properties listed at $2 million and above saw cash transactions exceed 50%.

These trends can be attributed to barriers such as access to financing and credit challenges, particularly prevalent in the lower price ranges. The Texas housing market stands out with significant all-cash buying activity, recording that 39.6% of home purchases in the state were all-cash transactions. This reflects a 2.8% year-over-year increase in cash transactions, surpassing the national average.

State and Regional Highlights

In the first half of 2025, Mississippi (49.6%), Montana (46.0%), Idaho (45.0%), Hawaii (44.9%), and Maine (44.4%) reported the highest rates of cash purchases. Texas metropolitan areas, including cities like Miami (39.2%), Birmingham (38.8%), and St. Louis (38.1%), also displayed significant cash sales rates. Conversely, younger markets with higher costs, such as Seattle (17.9%) and San Jose (20.6%), continued to exhibit lower proportions of cash sales, indicating a greater sensitivity to mortgage rates.

The current housing market dynamics suggest that should mortgage rates decline, there may be an influx of financed buyers, particularly first-time buyers who have been facing affordability challenges. This shift could potentially reshape the balance between cash and financed transactions in the real estate market.

Future Market Considerations

The present share of cash sales reflects a concentration of wealth in the housing market, indicating significant implications for future transactions. The relationship between cash and financed buyers will depend heavily on fluctuations in mortgage rates moving forward. Active real estate transactions are reported across various markets, including major areas like Austin, Texas, which continues to display high percentages of cash transactions and ongoing buyer activity compared to other regions.

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HERE Resources

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Additional Resources

• Realty News Report
• Google Search: U.S. Housing Market Cash Sales
• Newsweek
• Wikipedia: Real estate
• Bloomberg Opinion
• Google Scholar: Cash buyers housing market
• Mansion Global
• Encyclopedia Britannica: housing market trends
• Realtor.com
• Google News: Austin housing market

Author: STAFF HERE SAN ANTONIO WRITER

The SAN ANTONIO STAFF WRITER represents the experienced team at HERESanAntonio.com, your go-to source for actionable local news and information in San Antonio, Bexar County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Fiesta San Antonio, San Antonio Stock Show & Rodeo, and Dia de los Muertos. Our coverage extends to key organizations like the Greater San Antonio Chamber of Commerce and United Way of San Antonio and Bexar County, plus leading businesses in retail, insurance, and energy that power the local economy such as H-E-B, USAA, and Valero Energy. As part of the broader HERE network, including HEREAustinTX.com, HERECollegeStation.com, HEREDallas.com, and HEREHouston.com, we provide comprehensive, credible insights into Texas's dynamic landscape.