Cash Is Key: The Top 10 States for All-Cash Home Sales

 Homebuyers may find that offering cash could give them an edge in the summer's fiercely competitive housing market. That is particularly true if they are looking for a home in the South.

Six of the 10 states with the highest percentage of cash home sales were in the South in the first quarter of this year, according to a report from NAF Cash. (NAF Cash is an affiliated company of national mortgage lender New American Funding that helps approved homebuyers make all-cash offers.)

In Mississippi, more than half of all homes purchased, 56%, were bought with all cash.

"By understanding the cash buying trends in different states, homebuyers can make more strategic decisions and position themselves for success in their homebuying journey," Miguel Villegas, director of NAF Cash, said in a statement.

 

 

The more affordable home prices in many Southern and Midwestern states have attracted investors, home flippers, and retirees. These buyers are more likely to purchase real estate in cash. All of the states in the top 10 had median list prices below $400,000, according to Realtor.com data.  

The lower prices also lured buyers from more expensive parts of the country. These buyers may be looking for larger, nicer homes than they could have afforded in the pricier areas they came from.

Sellers often prefer cash offers because they want a quicker sale. They may also believe these deals are more likely to close.

Cash sales are frequent in Gulfport, Mississippi, a popular coastal destination for retirees and those seeking vacation homes, says real estate broker Jacqueline Ready of Berkshire Hathaway HomeServices Panoramic Properties.

“Often people are relocating from much more expensive markets to Mississippi,” says Ready. She also sees “investors who are located in much more expensive markets and they want to make their money go a bit a further.”

Across the country, all-cash buyers purchased about 28% of homes in April, according to the National Association of Realtors.

In several Southern and Midwestern states, cash sales were even more common. Louisiana followed closely behind Mississippi with 53% of cash homebuyers in the first quarter of the year, according to the NAF analysis. Michigan had 51% of cash sales.

All the states with high percentages of cash buyers boasted lower home prices—except for New York. About 44% of homebuyers in the state paid for their properties in cash in the first quarter of the year. That was despite the state's median $695,000 price tag in April, according to Realtor.com data.

"Cash is king and can provide an advantage in the market," said Villegas. "The seller will sometimes come down on price or provide seller concessions toward closing costs."

Buyers can see where the competition is making high numbers of cash offers using the NAF Cash Maps tool. The tool provides state, county, and historical data.

Top 10 States for Cash Home Sales in the First Quarter of 2024

1. Mississippi

Median home price in April*: $289,900

Percentage of cash sales: 56%

 2. Louisiana

Median home price: $284, 239

Percentage of cash sales: 53%

 3. Michigan

Median home price: $289,900

Percentage of cash sales: 51%

 4. Georgia

Median home price: $392,400

Percentage of cash sales: 47%

 5. New York

Median home price: $695,000

Percentage of cash sales: 44%

 6. Alabama

Median home price: $330,950

Percentage of cash sales: 40%

 7. South Carolina

Median home price: $351,370

Percentage of cash sales: 38%

 8. Indiana

Median home price: $299,900

Percentage of cash sales: 37%

 9. Missouri

Median home price: $299,900

Percentage of cash sales: 37%

 10. West Virginia

Median home price: $240,000

Percentage of cash sales: 36%

 

* Home listing price data is from Realtor.com.