House hunters who are willing to make an all-cash offer on a property usually have a leg up on their competitors seeking financing because there is less chance of the sale falling through.
And one city in the Southwest tops the list for cash deals.
Nearly three-quarters of homes purchased in Albuquerque, NM, were paid for with all cash, bypassing the often-nervous mortgage process entirely.
In the desert city of more than half a million, made famous as the setting of AMC’s “Breaking Bad,” 71% of home purchases were all-cash in October 2024, according to the most recent figures available from Realtor. .com®.
The median list price in New Mexico’s largest metro area was $399,900 at the time.
Albuquerque’s share of all cash was more than double the national average of 34.6% cash home purchases.
“Albuquerque is relatively affordable, which makes cash purchases easier,” says Realtor.com Senior Economist Joel Berner.
“It’s also an attractive market for investors… and investors are generally better able to pay cash or secure their own financing other than a conventional mortgage.”
Berner adds that Albuquerque has led the national rate of cash purchases for a long time, “and the gap is growing.”
West and South lead in cash deals
The top 10 cities where at least 40% of home purchases were paid in full cash were all in the South and West, including three in Florida, two in Texas and one each in New Mexico, South Carolina, Nevada, Alabama . and Tennessee.
Berner says that’s because properties in those parts of the country are generally more affordable than in other sectors of the market.
Entry in no. No. 2 behind Albuquerque is Myrtle Beach, SC, where cash home purchase deals accounted for just 56% of residential real estate purchases during the same period, with the median list price standing at $340,000.
The city of North Port, FL, located between Tampa and Fort Myers along the Gulf Coast, saw cash home purchases up 47% in the fall, when the median list price hovered around $474,224, landing it in third on Realtor Lista .com.
According to Berner, locations in South Carolina and Florida have attracted deep-pocketed house hunters looking to snap up beachfront condos as second homes.
In January 2024, the share of homebuyers making cash offers was 32% nationwide, marking the highest rate in a decade, according to a National Association of Realtors report from last March.
Cash offers conquer all
Cash deals tend to close faster, sometimes in just a few weeks, compared to mortgage transactions that can take a month or more.
For these reasons, sellers tend to favor potential buyers who approach them with a cash offer, as opposed to those who would require the involvement of a mortgage lender.
It is important to note that most home buyers across the US still rely on financing to purchase a home.
Real estate investors and vacation home buyers make up the majority of cash buyers.
Repeat buyers are also more likely to make a cash offer than first-time buyers because they can use the money from the sale of their previous property towards their next purchase.
US cities with the most cash home purchases
1. Albuquerque, NM
Share of purchase with cash: 71.4%
Median list price: $399,900
2. Myrtle Beach, SC
Share of purchase with cash: 55.8%
Median list price: $340,000
3. North Port, FL
Share of purchase with cash: 47.4%
Median list price: $474,224
Share of purchase with cash: 47%
Median list price: $520,000
Share of purchase with cash: 43.8%
Median list price: $429,900
Share of purchase with cash: 43.2%
Median list price: $369,450
Share of purchase with cash: 42.4%
Median list price: $525,000
Share of purchase with cash: 41.6%
Median list price: $475,000
Share of purchase with cash: 40.4%
Median list price: $299,947
Share of purchase with cash: 40.3%
Median list price: $334,900
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Image Source : nypost.com