{"id":686097,"date":"2022-09-16T07:03:04","date_gmt":"2022-09-16T11:03:04","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/redfin-reports-nearly-one-third-of-u-s-homes-are-bought-with-cash-well-above-pre-pandemic-levels\/"},"modified":"2022-09-16T07:03:04","modified_gmt":"2022-09-16T11:03:04","slug":"redfin-reports-nearly-one-third-of-u-s-homes-are-bought-with-cash-well-above-pre-pandemic-levels","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/redfin-reports-nearly-one-third-of-u-s-homes-are-bought-with-cash-well-above-pre-pandemic-levels\/","title":{"rendered":"Redfin Reports Nearly One-Third of U.S. Homes Are Bought With Cash, Well Above Pre-Pandemic Levels"},"content":{"rendered":"<p>        <!--.bwalignc { text-align: center; list-style-position: inside }body {font:normal small Arial,Helvetica,sans-serif;color:#000;background-color:#fff;padding:24px;margin:0;} a img {border:0;} h3 {font-size:medium;color:#000;margin:0 0 1em 0; text-align:center;}-->  <\/p>\n<p class=\"bwalignc\"><b>Redfin Reports Nearly One-Third of U.S. Homes Are Bought With Cash, Well Above Pre-Pandemic Levels<\/b><\/p>\n<p class=\"bwalignc\"><i>For buyers taking out loans, the share of homes purchased using FHA and VA loans are both up slightly from record lows as the market cools down<\/i><\/p>\n<p>SEATTLE&#8211;(<a href=\"http:\/\/www.businesswire.com\">BUSINESS WIRE<\/a>)&#8211;<br \/>\n(NASDAQ: RDFN) \u2014 Nearly one-third (31.4%) of U.S. home purchases were paid for with all cash in July, according to a <a rel=\"nofollow\" href=\"https:\/\/cts.businesswire.com\/ct\/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.redfin.com%2Fnews%2Fall-cash-home-purchases-fha-loans-july-2022&amp;esheet=52909880&amp;newsitemid=20220916005079&amp;lan=en-US&amp;anchor=new+report&amp;index=1&amp;md5=1045ae1d7b1cdaa0d77655c3e481ad41\">new report<\/a> from Redfin (<a rel=\"nofollow\" href=\"https:\/\/cts.businesswire.com\/ct\/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.redfin.com%2F&amp;esheet=52909880&amp;newsitemid=20220916005079&amp;lan=en-US&amp;anchor=www.redfin.com&amp;index=2&amp;md5=265912ae985dc9cc333f6fe8b4f7baa9\">www.redfin.com<\/a>), the technology-powered real estate brokerage. That\u2019s near the eight-year high reached in February and up from 27.5% a year earlier. The share of all-cash purchases jumped in early 2021 during the pandemic-driven homebuying frenzy and has remained elevated since then.\n<\/p>\n<p>\nAll-cash purchases are prevalent with today\u2019s affluent buyers largely because mortgage rates have doubled from a year ago, reaching 6% in mid-September. Buyers who don\u2019t use loans avoid high interest payments that exacerbate home prices, which remain near record highs even as the housing market slows.\n<\/p>\n<p>\nAll-cash purchases jumped in popularity last year because they allowed buyers to stand out among fierce competition: Bidding-war rates reached record highs in early 2021 due to sub-3% mortgage rates and remote work driving homebuyer demand. Remote work has also given more Americans the <i>option<\/i> to use all cash, as it allowed a record share of homebuyers to relocate, often from expensive to affordable parts of the country. U.S. home values have skyrocketed since the start of the pandemic, which means Americans who sell a home in a pricey place like San Francisco may use equity to pay cash in a more affordable area like Las Vegas.\n<\/p>\n<p>\nInvestors are also contributing to the all-cash boom. Real estate investors bought up a record share of the U.S. housing stock in the fourth quarter of last year, and their share has remained above pre-pandemic levels since then. About three-quarters of investor home purchases are made with cash.\n<\/p>\n<p><b>All-cash purchases are most prevalent in Long Island, NY and Florida<\/b><\/p>\n<p>\nThree of the five metro areas with the highest share of all-cash purchases are in Florida, partly because the state is home to a lot of affluent buyers. But Long Island, NY\u2013which includes the Hamptons\u2013is home to the highest share of cash buyers, with two-thirds (66.5%) of home purchases made in cash in July. Next come West Palm Beach (56.4%), Jacksonville (45.5%), Milwaukee (45.3%) and Fort Lauderdale (43.3%).\n<\/p>\n<p>\nA trio of expensive West Coast markets have the lowest share of all-cash purchases, partly because high prices make it more challenging to pay in cash: Oakland, CA (15.1%), San Jose, CA (16%) and Seattle (16.7%). Washington, D.C. (17.5%) and Pittsburgh (17.8%) round out the bottom five.\n<\/p>\n<p><b>FHA loans are somewhat more popular than they were at the height of the market, but less prevalent than before the pandemic<\/b><\/p>\n<p>\nEven though all-cash purchases are at an eight-year high, most home purchases use loans. Conventional loans are by far the most common type, followed by Federal Housing Administration (FHA) and Veterans Affairs (VA) loans.\n<\/p>\n<p>\nMore than eight in 10 (81.3%) of home sales that used a mortgage in July took out a conventional loan, down slightly from 81.9% a year earlier and down from the record high of 83.8% set in April.\n<\/p>\n<p>\nRoughly 12% of home sales that used a mortgage in July took out an FHA loan, flat from a year earlier but up from the all-time low of 10.4% in the spring. And 6.8% used a VA loan, up slightly from 6.2% a year earlier but up from the record low of 5.4% in spring 2021.\n<\/p>\n<p>\n\u201cThe spike in interest rates is pricing some buyers out of the market, but it\u2019s also helping some buyers get <i>into <\/i>the market because there\u2019s less competition,\u201d said Tampa Redfin agent Eric Auciello. \u201cA lot of buyers who were repeatedly outbid earlier this year are having their offers accepted, including those using FHA loans, those with smaller down payments and ones that include inspection and financing contingencies. In 2021, hardly any buyers used FHA loans. The story is completely different now, as low down payments are no longer an automatic deal breaker for sellers.\u201d\n<\/p>\n<p>\nBut FHA loans are still much less prevalent than they were pre-pandemic; about 17% of mortgaged purchases used them in 2019. That\u2019s partly because even though the market has cooled and FHA buyers are less likely to face competition, homes are still quite expensive: The typical U.S. home that sold in July cost about 8% more than a year earlier. That means a lot of the people who would use an FHA loan\u2013lower-income, first-time homebuyers\u2013are priced out of the market.\n<\/p>\n<p>\nVA purchases are about as popular as before the pandemic; roughly 7% of mortgaged purchases used them in 2019.\n<\/p>\n<p>\nTo read the full report, including charts, methodology and additional metro-level data, visit: <a rel=\"nofollow\" href=\"https:\/\/cts.businesswire.com\/ct\/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.redfin.com%2Fnews%2Fall-cash-home-purchases-fha-loans-july-2022&amp;esheet=52909880&amp;newsitemid=20220916005079&amp;lan=en-US&amp;anchor=https%3A%2F%2Fwww.redfin.com%2Fnews%2Fall-cash-home-purchases-fha-loans-july-2022&amp;index=3&amp;md5=9c5d4290e923b077be1f05a082c1d50e\">https:\/\/www.redfin.com\/news\/all-cash-home-purchases-fha-loans-july-2022<\/a><\/p>\n<p><b>About Redfin<\/b><\/p>\n<p>\nRedfin (<a rel=\"nofollow\" href=\"https:\/\/cts.businesswire.com\/ct\/CT?id=smartlink&amp;url=http%3A%2F%2Fwww.redfin.com%2F&amp;esheet=52909880&amp;newsitemid=20220916005079&amp;lan=en-US&amp;anchor=www.redfin.com&amp;index=4&amp;md5=76daaf00b56bb763e9d95429821213b8\">www.redfin.com<\/a>) is a technology-powered real estate company. We help people find a place to live with brokerage, instant home-buying (iBuying), rentals, lending, title insurance, and renovations services. We sell homes for more money and charge half the fee. We also run the country&#8217;s #1 real-estate brokerage site. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Customers selling a home can take an instant cash offer from Redfin or have our renovations crew fix up their home to sell for top dollar. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we&#8217;ve saved customers more than $1 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 6,000 people.\n<\/p>\n<p>\nFor more information or to contact a local Redfin real estate agent, visit <a rel=\"nofollow\" href=\"https:\/\/cts.businesswire.com\/ct\/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.redfin.com%2F&amp;esheet=52909880&amp;newsitemid=20220916005079&amp;lan=en-US&amp;anchor=www.redfin.com&amp;index=5&amp;md5=da1211ffb891d81ec7163c6f9316d11e\">www.redfin.com<\/a>. To learn about housing market trends and download data, visit the <a rel=\"nofollow\" href=\"https:\/\/cts.businesswire.com\/ct\/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.redfin.com%2Fnews%2Fdata-center%2F&amp;esheet=52909880&amp;newsitemid=20220916005079&amp;lan=en-US&amp;anchor=Redfin+Data+Center&amp;index=6&amp;md5=451d5caa215767168dfb571eeb78982f\">Redfin Data Center<\/a>. To be added to Redfin&#8217;s press release distribution list, email <a rel=\"nofollow\" href=\"mailto:press@redfin.com\">press@redfin.com<\/a>. To view Redfin&#8217;s press center, <a rel=\"nofollow\" href=\"https:\/\/cts.businesswire.com\/ct\/CT?id=smartlink&amp;url=https%3A%2F%2Finvestors.redfin.com%2Fnews-events%2Fpress-releases&amp;esheet=52909880&amp;newsitemid=20220916005079&amp;lan=en-US&amp;anchor=click+here&amp;index=7&amp;md5=aaba33c43e0509e216f630594628f6b4\">click here<\/a>.\n<\/p>\n<p><img decoding=\"async\" alt=\"\" src=\"https:\/\/cts.businesswire.com\/ct\/CT?id=bwnews&amp;sty=20220916005079r1&amp;sid=flmnd&amp;distro=nx&amp;lang=en\" style=\"width:0;height:0\" \/><span class=\"bwct31415\" \/><\/p>\n<p id=\"mmgallerylink\"><span id=\"mmgallerylink-phrase\">View source version on businesswire.com: <\/span><span id=\"mmgallerylink-link\"><a href=\"https:\/\/www.businesswire.com\/news\/home\/20220916005079\/en\/\" rel=\"nofollow\">https:\/\/www.businesswire.com\/news\/home\/20220916005079\/en\/<\/a><\/span><\/p>\n<p><b>Redfin Journalist Services:<br \/>\n<\/b><br \/>Erin Osgood, 206-588-6863<br \/>\n<br \/><a rel=\"nofollow\" href=\"mailto:press@redfin.com\">press@redfin.com<\/a><\/p>\n<p><b>KEYWORDS:<\/b> Washington United States North America<\/p>\n<p><b>INDUSTRY KEYWORDS:<\/b> REIT Building Systems Residential Building &amp; Real Estate Construction &amp; Property Urban Planning<\/p>\n<p><b>MEDIA:<\/b><\/p>\n<table cellpadding=\"3\" cellspacing=\"3\">\n<tr>\n<td><font face=\"Arial\" size=\"2\"><b>Logo<\/b><\/font><\/td>\n<\/tr>\n<tr>\n<td><img decoding=\"async\" src=\"https:\/\/mms.businesswire.com\/media\/20220916005079\/en\/1407505\/3\/Redfin_Standard_Web_Logo.jpg\" alt=\"Logo\" \/><\/td>\n<\/tr>\n<tr>\n<td><font face=\"Arial\" size=\"2\"><\/font><\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"<p>Redfin Reports Nearly One-Third of U.S. Homes Are Bought With Cash, Well Above Pre-Pandemic Levels For buyers taking out loans, the share of homes purchased using FHA and VA loans are both up slightly from record lows as the market cools down SEATTLE&#8211;(BUSINESS WIRE)&#8211; (NASDAQ: RDFN) \u2014 Nearly one-third (31.4%) of U.S. home purchases were paid for with all cash in July, according to a new report from Redfin (www.redfin.com), the technology-powered real estate brokerage. That\u2019s near the eight-year high reached in February and up from 27.5% a year earlier. The share of all-cash purchases jumped in early 2021 during the pandemic-driven homebuying frenzy and has remained elevated since then. All-cash purchases are prevalent with today\u2019s affluent buyers largely because &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/www.marketnewsdesk.com\/index.php\/redfin-reports-nearly-one-third-of-u-s-homes-are-bought-with-cash-well-above-pre-pandemic-levels\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Redfin Reports Nearly One-Third of U.S. Homes Are Bought With Cash, Well Above Pre-Pandemic Levels&#8221;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-686097","post","type-post","status-publish","format-standard","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Redfin Reports Nearly One-Third of U.S. Homes Are Bought With Cash, Well Above Pre-Pandemic Levels - Market Newsdesk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.marketnewsdesk.com\/index.php\/redfin-reports-nearly-one-third-of-u-s-homes-are-bought-with-cash-well-above-pre-pandemic-levels\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Redfin Reports Nearly One-Third of U.S. Homes Are Bought With Cash, Well Above Pre-Pandemic Levels - Market Newsdesk\" \/>\n<meta property=\"og:description\" content=\"Redfin Reports Nearly One-Third of U.S. Homes Are Bought With Cash, Well Above Pre-Pandemic Levels For buyers taking out loans, the share of homes purchased using FHA and VA loans are both up slightly from record lows as the market cools down SEATTLE&#8211;(BUSINESS WIRE)&#8211; (NASDAQ: RDFN) \u2014 Nearly one-third (31.4%) of U.S. home purchases were paid for with all cash in July, according to a new report from Redfin (www.redfin.com), the technology-powered real estate brokerage. That\u2019s near the eight-year high reached in February and up from 27.5% a year earlier. The share of all-cash purchases jumped in early 2021 during the pandemic-driven homebuying frenzy and has remained elevated since then. All-cash purchases are prevalent with today\u2019s affluent buyers largely because &hellip; Continue reading &quot;Redfin Reports Nearly One-Third of U.S. Homes Are Bought With Cash, Well Above Pre-Pandemic Levels&quot;\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.marketnewsdesk.com\/index.php\/redfin-reports-nearly-one-third-of-u-s-homes-are-bought-with-cash-well-above-pre-pandemic-levels\/\" \/>\n<meta property=\"og:site_name\" content=\"Market Newsdesk\" \/>\n<meta property=\"article:published_time\" content=\"2022-09-16T11:03:04+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cts.businesswire.com\/ct\/CT?id=bwnews&amp;sty=20220916005079r1&amp;sid=flmnd&amp;distro=nx&amp;lang=en\" \/>\n<meta name=\"author\" content=\"Newsdesk\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Newsdesk\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/redfin-reports-nearly-one-third-of-u-s-homes-are-bought-with-cash-well-above-pre-pandemic-levels\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/redfin-reports-nearly-one-third-of-u-s-homes-are-bought-with-cash-well-above-pre-pandemic-levels\\\/\"},\"author\":{\"name\":\"Newsdesk\",\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/#\\\/schema\\\/person\\\/482f27a394d4fda80ecb5499e519d979\"},\"headline\":\"Redfin Reports Nearly One-Third of U.S. Homes Are Bought With Cash, Well Above Pre-Pandemic Levels\",\"datePublished\":\"2022-09-16T11:03:04+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/redfin-reports-nearly-one-third-of-u-s-homes-are-bought-with-cash-well-above-pre-pandemic-levels\\\/\"},\"wordCount\":1034,\"image\":{\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/redfin-reports-nearly-one-third-of-u-s-homes-are-bought-with-cash-well-above-pre-pandemic-levels\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/cts.businesswire.com\\\/ct\\\/CT?id=bwnews&amp;sty=20220916005079r1&amp;sid=flmnd&amp;distro=nx&amp;lang=en\",\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/redfin-reports-nearly-one-third-of-u-s-homes-are-bought-with-cash-well-above-pre-pandemic-levels\\\/\",\"url\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/redfin-reports-nearly-one-third-of-u-s-homes-are-bought-with-cash-well-above-pre-pandemic-levels\\\/\",\"name\":\"Redfin Reports Nearly One-Third of U.S. Homes Are Bought With Cash, Well Above Pre-Pandemic Levels - 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Market Newsdesk","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.marketnewsdesk.com\/index.php\/redfin-reports-nearly-one-third-of-u-s-homes-are-bought-with-cash-well-above-pre-pandemic-levels\/","og_locale":"en_US","og_type":"article","og_title":"Redfin Reports Nearly One-Third of U.S. Homes Are Bought With Cash, Well Above Pre-Pandemic Levels - Market Newsdesk","og_description":"Redfin Reports Nearly One-Third of U.S. Homes Are Bought With Cash, Well Above Pre-Pandemic Levels For buyers taking out loans, the share of homes purchased using FHA and VA loans are both up slightly from record lows as the market cools down SEATTLE&#8211;(BUSINESS WIRE)&#8211; (NASDAQ: RDFN) \u2014 Nearly one-third (31.4%) of U.S. home purchases were paid for with all cash in July, according to a new report from Redfin (www.redfin.com), the technology-powered real estate brokerage. That\u2019s near the eight-year high reached in February and up from 27.5% a year earlier. The share of all-cash purchases jumped in early 2021 during the pandemic-driven homebuying frenzy and has remained elevated since then. All-cash purchases are prevalent with today\u2019s affluent buyers largely because &hellip; Continue reading \"Redfin Reports Nearly One-Third of U.S. Homes Are Bought With Cash, Well Above Pre-Pandemic Levels\"","og_url":"https:\/\/www.marketnewsdesk.com\/index.php\/redfin-reports-nearly-one-third-of-u-s-homes-are-bought-with-cash-well-above-pre-pandemic-levels\/","og_site_name":"Market Newsdesk","article_published_time":"2022-09-16T11:03:04+00:00","og_image":[{"url":"https:\/\/cts.businesswire.com\/ct\/CT?id=bwnews&amp;sty=20220916005079r1&amp;sid=flmnd&amp;distro=nx&amp;lang=en","type":"","width":"","height":""}],"author":"Newsdesk","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Newsdesk","Est. reading time":"5 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.marketnewsdesk.com\/index.php\/redfin-reports-nearly-one-third-of-u-s-homes-are-bought-with-cash-well-above-pre-pandemic-levels\/#article","isPartOf":{"@id":"https:\/\/www.marketnewsdesk.com\/index.php\/redfin-reports-nearly-one-third-of-u-s-homes-are-bought-with-cash-well-above-pre-pandemic-levels\/"},"author":{"name":"Newsdesk","@id":"https:\/\/www.marketnewsdesk.com\/#\/schema\/person\/482f27a394d4fda80ecb5499e519d979"},"headline":"Redfin Reports Nearly One-Third of U.S. Homes Are Bought With Cash, Well Above Pre-Pandemic Levels","datePublished":"2022-09-16T11:03:04+00:00","mainEntityOfPage":{"@id":"https:\/\/www.marketnewsdesk.com\/index.php\/redfin-reports-nearly-one-third-of-u-s-homes-are-bought-with-cash-well-above-pre-pandemic-levels\/"},"wordCount":1034,"image":{"@id":"https:\/\/www.marketnewsdesk.com\/index.php\/redfin-reports-nearly-one-third-of-u-s-homes-are-bought-with-cash-well-above-pre-pandemic-levels\/#primaryimage"},"thumbnailUrl":"https:\/\/cts.businesswire.com\/ct\/CT?id=bwnews&amp;sty=20220916005079r1&amp;sid=flmnd&amp;distro=nx&amp;lang=en","inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.marketnewsdesk.com\/index.php\/redfin-reports-nearly-one-third-of-u-s-homes-are-bought-with-cash-well-above-pre-pandemic-levels\/","url":"https:\/\/www.marketnewsdesk.com\/index.php\/redfin-reports-nearly-one-third-of-u-s-homes-are-bought-with-cash-well-above-pre-pandemic-levels\/","name":"Redfin Reports Nearly One-Third of U.S. Homes Are Bought With Cash, Well Above Pre-Pandemic Levels - 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