Cash Home Purchases Ended 2025 at Five-Year Low

Seattle, WA, February 17, 2026-Just under three in ten (29%) U.S. homebuyers paid in all cash in December, down from 30.3% a year earlier and the lowest December share since 2020, according to Redfin.

The data in this report is from a Redfin analysis of county records across 38 of the most populous U.S. metropolitan areas. December 2025 is the most recent month for which data is available. An all-cash purchase is one in which there is no mortgage loan information on the deed.

The share of homebuyers paying in cash peaked at nearly 35% in late 2023 because mortgage rates peaked in the high-7% range around that time. Buyers were inclined to pay in cash-if they could afford it-to avoid high monthly interest payments. 

When mortgage rates came down from their peak, all-cash payments became less common, as lower rates meant lower interest payments. The average 30-year-fixed mortgage rate currently sits at 6.09%.

Another reason the share of buyers paying in cash has declined: It’s the strongest buyer’s market in recent history. Sellers outnumber buyers by a record 47%, giving the buyers who are in the market negotiating power. Buyers aren’t facing much competition, which means they don’t have to pull out all of the stops (such as offering all cash and waiving contingencies) to woo sellers like they did during the pandemic homebuying frenzy.

While most buyers today don’t need to pay in cash to win a home, paying in cash can still help buyers get better deal terms. Sellers in some areas-especially Texas and Florida-are watching their homes sit on the market for months without showings. That makes cash deals all the more attractive because they typically close faster than deals in which the buyer takes out a loan.

“The leverage buyers have when they pay in cash is unbelievable,” said Amanda Peterson, a Redfin Premier real estate agent in Dallas. “It’s not uncommon to see a buyer score a home for 10% to 20% below the appraised value if they offer cash.”