BiggerPockets Daily Cash Purchases Continue to Make Up a Huge Segment of the Market
9 snips
Oct 17, 2025 Nearly 30% of U.S. homebuyers are still paying in cash, highlighting affluent buyers' influence in the market. Down payments have skyrocketed to a record $70,000, marking a 6% increase from last year. Falling mortgage rates are reshaping buying strategies, offering hope for first-time buyers in a cooling market. The podcast also explores regional disparities in cash buying and how certain cities exhibit strikingly different cash purchase trends.
AI Snips
Chapters
Transcript
Episode notes
Cash Buying Remains Elevated Nationally
- Nearly 29% of U.S. homebuyers paid cash in August, remaining elevated versus pre-pandemic levels.
- Cash purchases peaked when mortgage rates exceeded 7.5%, then eased as rates fell toward ~6.3%.
Down Payments Reach All-Time High
- Median down payments hit a record $70,000, driven by higher prices and wealthier buyers.
- The typical down payment was 18.6% of price, showing affordability pressures for starters.
Buyer’s Market Lowers Cash Advantage
- Cooler market dynamics reduced the need to pay cash because sellers now face more buyers than before.
- Redfin called it a buyer's market with sellers outnumbering buyers by over 500,000 this summer.