Almost a third of all homes sold in the first six months of 2025 went to buyers who made all-cash offers, according to a report out Tuesday from the National Association of Realtors.

Cash offers made sense back in the competitive pandemic housing market, said Hannah Jones, senior economic research analyst at the National Association of Realtors. But now?

“We're in this slightly less competitive housing market, and so it's interesting to see that cash share is still relatively high, because it is also this flag of investor activity to some degree,” she said. “And it's also a flag of how much wealth is in the housing market right now.”

When it comes to cheaper homes, Jones said, the cash buyers tend to be investors who will either rent the place out or try to flip it for profit. 

“It also could be buyers who maybe can't get approved for a mortgage, and so they're looking to buy in all cash,” she said.

But Jones said there’s another group of all-cash buyers making bids on more expensive homes. They tend to be wealthier, older, and they’ve owned homes before.

“There are households that are definitely in a situation where, if they sell their home, they can buy their next home in all cash,” she said.

If they’ve been in their house long enough, gains in value might offset the cost of a new house — especially if they downsize or move somewhere more affordable. 

Paying in cash makes an offer more attractive to sellers. It also costs less for buyers. 

 Michael Reher, a finance professor at the University of California, San Diego, found that out after he made a bid on a house backed by a mortgage right before the pandemic, and lost out to an all-cash offer. 

He and a fellow researcher looked at how much of a difference cash made for the average buyer: “If they were to switch from mortgage to cash, they could buy the same home for 10% less,” he said.

One caveat, though: That research was done before the COVID-19 pandemic.

In the time since, the prevalence of cash offers reflects a market that’s tough to break into, said Redfin chief economist Daryl Fairweather.

“People who are first time home buyers, who don't have cash, who can only afford small down payments. It's been quite hard for them in this high interest rate environment,” she said.

Because less cash means more risk for sellers that financing may fall through, and the deal may fall apart.