It turns out that buyers are paying cash for homes mostly in the Sun Belt markets.

Nationwide, about 28% of homebuyers paid cash for their home purchase. However, in some metropolitan areas, more than half of recent buyers have opted to skip financing altogether.

At the top of the list is Sebastian-Vero Beach, Florida, where 63% of buyers paid cash. Other markets such as Houma-Thibodaux, Louisiana, Punta Gorda, Florida, and Naples, Florida, also saw more than 50% of transactions made without a mortgage.

These areas share some common characteristics:

  • Older populations, with homeowners using equity from previous properties
  • Strong second-home demand and investor activity
  • Attractive areas to movers

While mortgage rates remain above 6%, cash buyers are finding ways to stay active. For some, it's a strategic move to stay competitive in markets with a tight housing supply. For others, it's a way to avoid borrowing costs.