Smallest share of all-cash purchases in 13 years, Redfin reports

With historically low interest rates, many typical “all-cash buyers” have modified their strategies to include financing their purchases. We can help!

Just 24% of homes sold so far in 2020 were bought with all cash, according to a new report from Redfin. That’s down from 25.3% in 2019 and the smallest share of all-cash since 2007, when 22.4% of homes sold were bought without a mortgage loan. Since 2001, all-cash purchases hit a trough in 2006, when just 20.7% of homes were bought with cash, but peaked in 2013, when 34% of homes were bought without mortgages. Since, their share has generally decreased, hovering between 25% and 28% in the last five years before dropping in 2020.

Redfin attributes the decline of all-cash transactions to the historically low mortgage rate environment, relegating cash purchases as incentives in a hyper-competitive market. Read the complete Scotsman Guide article here.