More buyers are bringing just cash to closing. All-cash purchases in the first quarter comprised 34% of all single-family sales—the highest level since the first quarter of 2015, according to a new report from ATTOM Data Solutions, a housing research firm.
As home buyers race to compete in a fierce housing market marked by bidding wars, more buyers are bringing cash to try to triumph over the competition. The tactic has been shown to work for those who can afford to do so. Read more: All-Cash Buyers More Likely to Win Bidding Wars
Cash sales represented the largest share of all transactions in the first quarter in Flint, Mich.—comprising 61.8% of all home sales, according to ATTOM Data Solutions’ findings. Detroit, Mich., had the next highest at 61.5% of sales, followed by Utica, N.Y. (54.8%); Naples, Fla. (54.4%); and Ann Arbor, Mich. (53%).
Several housing markets are seeing a rapid increase in the number of cash sales in their markets. The following chart shows the housing leaders with the largest upticks.
On the other hand, the markets where cash sales comprised the smallest share of transactions in the first quarter were: Kennewick, Wash. (17.2%); Augusta, Ga. (17.9%); Lincoln, Neb. (18.1%); Washington, D.C. (19.4%); and San Jose, Calif. (19.4%).