People with deep pockets are looking to make big deals in key housing markets across the country.
Nationwide, nearly one-third of home purchases in December — 31.2% — were made with all cash, according to real-estate brokerage Redfin. That figure is up from 28.8% one year prior, and down slightly from the eight-year high of 31.9% in November.
In some cities — particularly metros in Florida — all-cash purchases are especially likely, accounting for nearly half of purchases, or even more in one market.
Following are the cities where all-cash deals were most prevalent in December, according to Redfin’s analysis of 40 of the most populous U.S. metropolitan areas.
1. West Palm Beach, Florida
Share of home purchases in this metro area that were made in all cash in December: 52%
West Palm Beach is the one market on this list where more than half of homebuyers paid in cash during December.
Recently, a combination of inflation and rising mortgage rates has caused home prices to fall in the region. As many buyers pause to consider the state of the market, all-cash buyers are swooping in.
As Sasha Kraver, a real estate agent at Douglas Elliman on Palm Beach, told a local TV station:
“I think a lot of investors are very finicky right now because there is a lot of uncertainty in the market, but cash buyers are flocking to West Palm and Palm Beach County.”
2. Jacksonville, Florida
Share of home purchases in this metro area that were made in all cash in December: 45.3%
All-cash deals have been the rage in Jacksonville for more than a year now. New residents from big cities (New York, Boston, Seattle) and other states (Ohio, Virginia) have been flocking to Jacksonville.
As local real estate agent Elizabeth O’Steen told the Jacksonville Daily Record in January 2022: “There are more cash buyers than I have ever seen in my career.”
The trend has shown little sign of slowing down since O’Steen made that comment.
3. Miami, Florida
Share of home purchases in this metro area that were made in all cash in December: 45%
Miami is one of “The 15 Best Places to Retire in America.” Many people who want to join the fun in the sun are bringing big piles of cash with them to buy the home of their retirement dreams.
4. Cleveland, Ohio
Share of home purchases in this metro area that were made in all cash in December: 43.6%
Cleveland is a city long known for its affordability. Relatively modest home prices probably give people more opportunity to pay all cash for new digs.
5. Fort Lauderdale, Florida
Share of home purchases in this metro area that were made in all cash in December: 43.5%
This is another city where buyers who want to pay all cash might want to wait a bit longer to get a better deal: Last August, Fort Lauderdale was projected to be one of the “10 Cities Where Home Prices Are Predicted to Decline the Most.”
And indeed, Redfin reports that home prices in the city are down 8.9% year over year.
6. Tampa, Florida
Share of home purchases in this metro area that were made in all cash in December: 39.1%
Tampa is just one of the many Florida cities that dominate this list. In the past, Redfin has noted that all-cash deals are popular in the Sunshine State because there are a lot of affluent buyers who can afford to pay for a home in cash.
7. Orlando, Florida
Share of home purchases in this metro area that were made in all cash in December: 37.7%
Toward the end of last year, Orlando was on the list of “10 Markets With the Most Home Sales Getting Canceled.” As buyers disappeared from the market, folks with a lot of cash began to scour the city for deals.
8. Cincinnati, Ohio
Share of home purchases in this metro area that were made in all cash in December: 36.6%
Cash is king for homebuyers in Cincinnati. Even better, the Ohio city is on the list of “9 Places That Will Pay You to Move There in 2023.”
9. Philadelphia, Pennsylvania
Share of home purchases in this metro area that were made in all cash in December: 35.9%
Pennsylvania is among the “10 States That Are Losing the Most Residents.” However, many of those who are bucking the trend and heading for the City of Brotherly Love apparently have bank accounts flush with cash.
10. Riverside, California
Share of home purchases in this metro area that were made in all cash in July: 35.4%
Riverside was among the “15 Cities With the Largest Drop in Home Sales in 2022.” Nearly half of those who are still interested in buying here are paying in cash for their new digs.
Chris Kissell
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