Real Estate Information Archive

Who’s Buying Homes with Cash Right Now?

Ryan Serhant, CEO of SERHANT, says there isn’t just 1 housing market right now. There are really 4: cash buyers, buyers who need a mortgage, homeowners with low mortgage rates, and builders.

Today, let’s zoom in on the 1st group – cash buyers.

According to the National Association of Realtors (NAR), 27% of homes sold in September were bought with all cash. That’s more than 1 in 4 buyers. And that’s a pretty big number, especially when so many people are struggling with affordability.

So where is all that cash coming from? When you hear a number like that, it's easy to picture wealthy investors buying up houses left and right. But that’s not necessarily the case. Some of those cash buyers are actually homeowners who've built up enough equity to buy their next home outright.

Here's what you should know about who's paying cash and what that really means for the market.

Who’s Paying Cash?

Cash buyers tend to fall into a few groups, according to NAR:

• Homeowners who sold a house and are using that money to buy their next one

• People buying a 2nd home

• Investors

So, it’s not all those big investors social media talks about. That 1st group may include people a lot more like you. Here’s how. According to Cotality, the average homeowner with a mortgage has about $310,000 in equity.

That’s a big deal right now. Many homeowners feel stuck because they don’t want to give up the low mortgage rate they have today. But once they learn they may have enough equity to move and pay cash for their next home, today’s rates don’t matter nearly as much. Because buying in all cash means…

• No monthly mortgage payment

• No need to borrow at today’s mortgage rates

• No loan approval process, so you may be able to close faster

And even if the equity won’t cover the whole purchase, putting more of it toward the next home means borrowing less. That can mean a smaller monthly payment, too.

But cash buyers like this are more common in some places than others. And how big of a segment of your local market this is, is going to depend on where you live.

For example, Realtor.com data shows cash buyers made up almost 47% of sales in Mississippi and 46% in Montana earlier this year (see map below).

Where does your state fall?

According to Realtor.com, the states with the most cash buyers reflect “a mix of affordability, wealth and buyer demographics.” Think places with lower home prices, or lots of retirees and 2nd-home buyers.

So, depending on where you live, you may see a lot more (or a lot fewer) cash buyers than the national number suggests. An agent who knows your area can tell you who’s actually buying near you.

Most Buyers Are Still Using a Mortgage

And if all of this has you thinking everyone’s paying cash, they’re not. If you’re planning to buy and need a mortgage, you’re actually in the majority.

Based on NAR’s numbers, nearly 3 out of 4 home purchases still involve financing. And for homes priced between $200,000 and $750,000, only about 1 in 5 sold for cash, according to Realtor.com (see graph below):

That means most people buying in that price range are financing their purchase, too. So, there’s no need to assume you’re at a disadvantage just because you’re using a loan.

Cash Buyers and Your Move

So, what does all this mean for you? Maybe more than you think.

If you already own a house, you may have enough equity to make your next move more affordable than you realize. And if you're buying with a mortgage, remember, you're in good company. Most buyers are financing their purchases, too.

The takeaway? Don't make assumptions about what's possible based on how other people are buying homes. What really matters is your equity, your budget, and what’s happening in your local market.

Bottom Line

Cash buyers are a meaningful part of today’s market, but they aren’t the whole market.

Whether you’re hoping to put your equity to work or you’re buying with a mortgage, let’s look at how much equity you have and who’s buying in your area, so you know what your next move could look like.

Credit Scoring Is Changing: 3 Things Homebuyers Should Know

Quick, what credit score do you need to buy a home? If a number pops into your head, there's a pretty good chance it's wrong. And the right answer is getting harder to pin down, because the way credit scores are determined and delivered is changing - for the better.

Here's what you need to know in today's changing credit climate.

#1  Most People Are Guessing 

Fannie Mae has been tracking consumer perceptions about mortgage requirements since 2015 and found that consumers consistently overestimated the minimum credit score lenders required to qualify for a mortgage. As recently as 2023, the average guess was 652.

In reality, the long-standing benchmark for loans backed by Fannie Mae and Freddie Mac is lower, at 620, and today even that isn't a hard rule for every mortgage they back. 

Like the Fannie Mae research, a recent survey from Veterans United found consumers continue to overestimate what it takes to qualify for a home loan:

The takeaway? Guessing wrong can cost you. 

A renter who assumes their score is too low and they can't qualify for a mortgage may never take steps to find out for sure.

#2  Credit Rules Are Changing

For decades, the mortgage industry relied on one set of scores - Classic FICO. Thanks to a push to promote competition, make credit scoring more inclusive, and help more Americans become homeowners, the Federal Housing Finance Agency (FHFA) has approved the use of new credit score models such as FICO 10T and VantageScore 4.0.

A different model can mean a different number for the same person. VantageScore says its model can score about 33 million adults that the Classic FICO's model can't. So the score you saw on an app last month may not be the one your lender pulls.

Remember: the models may be new, but the basics haven't changed.

#3  Do Your Part And Partner With A Pro

Your credit score is important - no matter how it's measured. Following the same basic rules will benefit your profile in the old and new score models:

Because while credit models may change, the general advice for you to improve your score doesn’t. Financial awareness and consistency mixed with a little willpower can go a long way.

Bottom Line

Don't make credit or homebuying decisions from a chart, an app, or a friend's advice. With the rules shifting and so many misconceptions out there, it's never too early to talk to a professional loan officer for advice on credit, budgeting, and what it would take to qualify for a mortgage.

You may be closer to owning a home than you think.

Don't Let the Fear of a Buyer Backing Out Scare You Away from Selling

There's nothing quite like the excitement of getting an offer on your house. You're one step closer to moving on to what's next. But what happens if that buyer backs out or ghosts you before closing?

If you've been seeing headlines about more home sales falling through lately, that possibility may be keeping you up at night. And it's true. According to Redfin and Cotality, canceled contracts have been on the rise.

But here's what those headlines don't always tell you…

Most sales still go through. Only 10-15% hit this snag. And even so, there are things you can do to help keep your sale from becoming one of them.

The key is knowing what tends to scare buyers away and getting ahead of those issues before they have a chance to derail your move.

What's Behind the Rise in Canceled Contracts?

Today's buyers are being more cautious. Mortgage rates are stretching budgets, and with more homes to choose from, buyers have more freedom to walk away if something doesn't feel right. As Redfin explains:

"That gives house hunters more options and makes them more likely to walk away if an inspection uncovers problems, an appraisal comes in low or the seller doesn't agree to concessions."

That's why an accepted offer isn't always a guaranteed sale. But it doesn't mean you should be afraid to put your house on the market, either.

It just means getting ahead of potential problems matters more than ever.

3 Things That Can Scare Off a Buyer (and How To Get Ahead of Them)

A Redfin survey asked real estate agents why some buyers are backing out. And their answers give you a short of cheatsheet into what could go sideways and how you can get ahead of those headaches (see graph below):

1. Inspection or repair issues (70.4%)

This is the big one. And the good news? It's also one of the areas where you can be the most proactive.

One simple way to head this off is by getting a pre-listing inspection before your house goes on the market. That way, if something needs attention, you can decide whether to fix it upfront (before you sell), adjust your price, or disclose it and come in already prepared for what’s likely to pop up in negotiations. It’s a lot better to find the skeletons in the closet before a buyer does.

2. Buyer financing falls through (27.8%)

Even buyers who are pre-approved can run into financing issues before closing. And with mortgage rates putting extra pressure on affordability, some buyers are finding it harder to make the numbers work.

While you can't control whether a buyer's loan goes through, you can work with your agent to look closely at their financing before accepting an offer. And if affordability is the concern, your agent can help you explore whether incentives like closing cost credits or a mortgage-rate buydown could make a difference.

3. The buyer can't sell their current home (21%)

Sometimes, your buyer needs to sell their house before they can buy yours. And if their sale falls through, yours could be affected too.

That's why it's important to understand any home-sale contingencies before accepting an offer. Your agent can help you look at where the buyer is in their own selling process and what protections you may want in place.

The goal isn't to eliminate every possible risk. It's to avoid being caught off guard by the ones you can plan for.

Don't Let the What-Ifs Keep You Up at Night 

Just remember when you read headlines about canceled deals, they don’t give you the full picture. Most home sales still make it to closing.

And if a sale does fall through, that doesn't automatically mean your house won't sell. Sometimes a buyer's circumstances change. Sometimes an issue comes up that can be addressed before the next offer.

What matters is having an agent who knows how to spot potential problems early, help you navigate negotiations, and keep your sale moving forward.

Because while you can't control every twist and turn, you can control how prepared you are.

Bottom Line

There's no need to let the fear of a buyer backing out hold you back. While no sale comes with guarantees, a little preparation upfront can go a long way toward making the whole process smoother.

If you're ready to make a move, let's talk about whether a pre-listing inspection makes sense for you.

Why There are More Homes for Sale Right Now (and What It Means for You)

Mortgage rates being back above 7% isn't exactly the news most people wanted. But it’s changing the market in ways that matter whether you’re buying or selling.

The number of homes for sale is growing faster than it was this time last year. And interestingly, the main reason isn’t a flood of new listings. It’s because homes aren’t selling as quickly.

Here’s why – and what that means if you’re thinking about buying or selling.

Inventory Growth Is Picking Up Steam

According to HousingWire Data, after inventory growth slowed down for most of the past year, it’s accelerated again in recent weeks. You can see that in the graph below. Just look at the blue line:

And what's behind this shift might surprise you.

When rates rise, some buyers hit pause. That means fewer homes sell each week. And as those unsold homes stay on the market alongside new listings, the number available starts to grow (see the blue line in the graph below).

Here’s another way to look at it to make it even more obvious. The graph below shows the relationship between rates and inventory. Again, this year is the blue line. Last year? That’s the green.

With rates inching up this year, you can see inventory has grown by about 25k. But when rates went down this time last year, buyers jumped back in, and inventory actually dropped by about 9k.

Logan Mohtashami, Lead Analyst at HousingWire, explains how that's flipped from 2025 to 2026:

"With mortgage rates over 7%, demand tends to soften and inventory rises . . ."

Homes Are Spending More Time on the Market

Here’s another metric that shows the impact rates are having: time on market. Data from Realtor.com shows the typical home spent 61 days on the market this September. Back in September 2021, it was just 41 days (see graph below):

Here’s what that tells us. In 2021, when rates were low, more buyers were active, and homes sold fast. But now that rates are a bit higher, not as many buyers are interested, so it takes a bit longer to close a deal.

How To Make This Market Work for You

So, what does all of this mean for your plans? That depends on which side of the move you’re on:

If you’re buying, more homes for sale means more choices and less pressure to rush. And more room to negotiate too. A house that’s been sitting for a while could have a seller who’s more willing to talk – not just about price, but repairs, closing costs, or even helping buy down your mortgage rate.

That doesn’t mean every seller will play ball. But compared to the frenzy of a few years ago, buyers have more leverage now.

If you're selling, the right strategy can make all the difference. Buyers have more homes to choose from, so making yours stand out is especially important. That starts with pricing it right from day one, making a great first impression, and working with your agent to highlight what makes your house worth choosing. Buyers are still buying and homes are still selling. The key is making sure yours is positioned to attract the right buyer.

The market hasn’t stopped. It’s just moving at a different pace. And whether you’re buying or selling, your strategy needs to move with it.

Bottom Line

In many places right now, inventory is growing and homes are taking a bit longer to sell. And that’s information that should shape the strategy you use going in.

Whether you're buying or selling, let's look at how long homes are taking to sell in your neighborhood, so your offer, or your price, fits today's market.

Two Moves That Can Get You Into Your First Home Sooner

For a lot of first-time buyers, owning a home can feel perpetually a few years out of reach. Saving for a down payment takes time, and each year you spend renting can make owning feel further off.

But buying your first home doesn’t have to happen to feel like a far away goal. Two choices you control can bring your first home years closer, even with affordability as tight as it is right now.

How Long Buying Really Takes

First, one quick definition. "Breaking even" is the point where owning has cost you about the same as renting would have over the same period. And after that point, owning starts to cost less than renting. Kara Ng, Senior Economist at Zillow, puts it this way:

"Buyers should think about not just when they can afford to buy, but how long they'd need to stay before owning makes more financial sense than renting."

So how long does reaching that point usually take? And what are the shortcuts? Let’s do the math.

According to Zillow, it usually takes about 8.5 years to save for a 20% down payment, then roughly 6.2 more years before owning costs the same as renting. Together, that's just under 15 years. But that math relies on two assumptions: that you're buying a mid-priced home, and that you're putting 20% down. 

Change either one and your timeline gets shorter. Change both and it can shrink fast. It also varies widely by market, since local prices and rents are different depending on where you live. 

A Starter Home Can Get You There Twice as Fast

A starter home usually means a home in the lower third of local prices. They’re often condos, townhomes, or single-family homes a little smaller or older than others in the area. 

Choosing one over a mid-priced home can cut your wait down by a lot. And while that might sound obvious, you may not realize just how much it shortens your timeline. Because if you’re buying a more affordable home, you don’t have to save up as much or as long.

Zillow found that nationwide, a starter home takes half the time – about 7.2 years – to save for and come out ahead on, compared with renting (see graph below):

That works out to about 4.6 years to save and 2.6 years to break even. It won't erase every affordability challenge, but it can take years off the wait. And if you’ve already been saving for a while, it could get you closer to making it a reality.

You Usually Don't Need To Put 20% Down

You, like many first-time homebuyers, might assume you need a 20% down payment to even consider buying. But a lot of the time, you don’t. 

Most first-time buyers don't put down anywhere near that. The National Association of Realtors shows the median down payment for first-time buyers is 10% (see graph below):

And the minimums go lower still. Some buyers put down as little as 3% on a conventional loan or 3.5% on an FHA loan, and eligible veterans or buyers in certain rural areas can put down nothing at all.

There's help with the upfront costs of buying, too. Down Payment Resource counts 2,746 assistance programs nationwide, and some are even stackable:

"Some homebuyers can layer multiple sources of assistance to reduce their upfront costs. Layering means combining more than one eligible source of funding as part of your home purchase."

Put those together – a lower price point, a smaller down payment, and help covering it – and the years you thought you needed start to come down.

Bottom Line

Your first home may not be as far off as it feels. When the numbers make sense for you, buying a starter home and putting down less than 20% can get you there years sooner. 

Want to see which starter homes in our area could fit your budget? Let's connect.

What Higher Mortgage Rates Mean for Home Sellers

Higher mortgage rates don't just affect buyers. They can change what it takes to sell your house, too.

That's because today's buyers are paying close attention to affordability. And when rates rise, even a relatively small change can make a noticeable difference in their monthly payment. So, they're looking for ways to make the numbers work. And in some markets, new construction is giving them exactly that.

If you're planning to sell, that doesn't mean you can't compete. But it does mean you need to understand what builders are doing to win over buyers – and what options you have, too.

Builders Are Competing on the Monthly Payment

New construction has something interesting going for it right now. While existing-home sales  (homes that have previously been lived in) continue to struggle under the weight of higher mortgage rates, new-home sales are holding up a bit better.

In a recent interview, Logan Mohtashami, Chief Economist at HousingWire explains new-home sales are at an 8-month high and are now running around 2019 levels. On the flip side, existing home sales are lagging behind and fall about 1 million home sales short of 2019 levels.

One big reason builders have been able to navigate higher rates differently is incentives. According to Realtor.com, nearly 1 in 5 (18.8%) newly built homes come with some kind of buyer incentive advertised up front:

The most common may surprise you. As the graph shows, many builders are offering reduced rates, sometimes through something called a mortgage rate buydown.

It’s essentially where they pay upfront costs to help buyers get a lower rate, and by extension, a lower monthly payment. It has obvious draws for buyers. For homebuilders, it helps them get their houses sold. So, a lot of builders see it as a win-win. That’s why reduced rates are a part of 13.8% of new home listings.

In some cases, builders are offering rates below 6%, maybe even far below 6%. And that can help buyers shave hundreds off their monthly payment. That's a big difference to a buyer who are feeling the pinch right now.

So, How Can Sellers Like You Compete?

First, don't assume a mortgage rate buydown is something only a builder can offer. Sellers can contribute toward a buyer's rate buydown too, depending on the loan and transaction. Does that mean you should offer one? Or that you have to if you want to compete? Not necessarily.

A buydown is just one possible lever. Depending on your market and the buyer, it may make more sense to negotiate on price, contribute toward your buyer’s closing costs, make repairs, or make sure your house stands out in ways a new build can't. That's why working with an agent who knows your local competition matters. Joel Berner, Senior Economist at Realtor.com, says:

“Sellers of existing homes are facing a lot of competition from the new-home space. . . so sellers should highlight the local amenities of their neighborhoods in contrast to the more suburban or exurban communities where many new homes are built.”

A great agent will do this naturally anyways. Knowing what makes your house different and showcasing that in your listing can help your house stand out. And remember, being open to making a few compromises or throwing in some concessions can make a bigger difference for buyers than you may think.

Today's Market Rewards Sellers Who Adapt

Builders have also been quicker to adjust their prices based on what buyers can actually afford and where demand is. That's putting pressure on the resale market in some areas. Robert Dietz, Chief Economist at the National Association of Home Builders (NAHB), explains:

“. . . existing homeowners now have to do the price discovery that builders have been doing since 2022.”

That's an important message if you're hoping to sell.

You don't automatically need to slash your price or offer a big concession. But you do need to price and market your house based on what buyers can pay today – not what sellers could get a few years ago.

And remember, this varies tremendously by location. New construction represents a much bigger share of the competition in some markets than others, and builder incentives aren't equally common everywhere. So, lean on an agent to see how big of a factor builders are in your area.

Bottom Line

Higher mortgage rates are making buyers more cost-conscious. Builders know that, and many are responding with reduced rate, closing-cost help, price reductions, and other incentives.

If you're thinking about selling, let's look at what buyers are getting from other homes in our area – including new construction – and make sure your house is positioned to compete.

Hoping for (or Dreading) a Housing Crash? The Experts Just Weighed In.

Half the buyers out there are scared home prices are about to crash. The other half are hoping they will.

A recent survey from Clever found 58% of Gen Z buyers are actually rooting for a crash, just so homeownership feels within reach.

So, what do the forecasts actually say?

Every quarter, Fannie Mae surveys more than 100 housing experts on where prices are headed. The newest results are in. And spoiler alert: they’re not calling for a crash – not even the pessimists.

What the Newest Numbers Actually Say

The panel's latest forecast has prices climbing every single year through at least 2030.

The panel's average forecast is that prices will rise by 14.7% in the next 5 years. And here’s where it gets really interesting. If you split these experts into optimists and pessimists, even the pessimists still expect prices to increase about 6.6% by the end of 2030 (see graph below):

The takeaway? If you've been waiting for prices to fall, you may be waiting a while.

One thing to keep in mind though – these are national numbers. Prices in your area could run a little hotter or a little cooler than this, so it helps to know what’s happening locally, too. But the big picture is prices aren’t crashing. Historically prices usually rise.

How This Quarter Compares to the Past

Here’s something you probably don’t realize. This survey runs 4 times every year, so you can track the panel's mood over time.

A year ago, the panel expected home prices to grow 2.1% this year. Now they’re forecasting 2.5%. That means the near-term outlook actually got more optimistic. But that’s only part of the story. The years after that shifted, too (see graph below):

Zoom out to 2027 through 2029 and the mood has cooled a bit. Each of those years is now expected to see a little less growth than the panel thought a year ago. That’s likely a reflection of where we are right now with everything that’s impacting the housing market.

But again, the overall takeaway here is every bar shows an increase in prices – the size of that increase has just moderated due to some of the factors at play.

A slower climb isn’t a bad thing, though. It’s a sign the market is settling into a more normal pace after a few wild years.

A little more growth here, a little less growth there. What hasn't budged once is the idea that home prices will keep growing.

What It Means for Your Next Move

Now, percentages are great, but you probably care more about the actual dollars and cents of your move, so let’s graph that out, too.

Run the numbers on a $400,000 home bought in January, and the panel's latest forecast puts you up about $58,000 in equity in 5 years just from price growth (see graph below):

That’s real wealth you could be building while others sit on the sidelines, waiting for a crash the experts don’t see coming. And with prices expected to keep rising, waiting could mean paying more for the same home later.

Bottom Line

Whether you're bracing for a crash or hoping for one, the verdict is the same – prices are still expected to rise, not fall. Let's talk about what that means for your market and your plans.

Why So Many Sellers Are Cutting Their Price Right Now

Price cuts are turning up everywhere right now, and they read very differently depending on which side of the deal you’re on.

Sellers tend to worry a cut means walking away with less than they hoped. Sometimes that’s true, but more often it just means the market moved faster than the listing did.

Buyers, for their part, often assume a cut means something’s wrong with the house. Most of the time, that’s not it.

This is what's actually driving all those price cuts, and why it matters no matter which side of the deal you're on.

42% of Homes for Sale Are Now Carrying a Price Cut

According to HousingWire Data, the share of sellers cutting their asking price has climbed every month for 7 straight months (see chart below):

Today, more than 4 in 10 active listings have had at least 1 price cut, and the typical seller is cutting about $17,560 off their original number. 

Here’s why that’s happening. With rates still elevated and more homes to choose from, buyers can afford to wait for the right number. So, sellers who don’t start there often end up adjusting anyway.

What does that mean for you?

• If you're selling, this isn’t a red flag. But it is a sign that pricing it right from day 1 is your best bet. Just know that the market's been shifting fast enough this year that sometimes even a well-priced house can fall behind within a matter of weeks. If that happens to you, dropping your price to catch up to where pricing actually stands today tends to bring in more buyers and helps you sell closer to true market value.

• If you're buying, it's easy to assume a price cut means something's wrong with the house. But with cuts happening on more than 4 in 10 homes right now, the reality is sellers are just catching up to where the market already is. And with affordability still tight, that's exactly the kind of opening you need to get a better deal.

Why Sellers Are Adjusting Faster than Before

HousingWire Data also shows list prices are trending down nationally. That’s often a sign sellers are pricing more realistically from the start instead of listing high and getting stuck cutting later. List prices have fallen about $26,000 from last year's peak.

Some of that decline is seasonal, since list prices typically soften each winter before rebounding in the spring. So, expect asking prices to keep drifting a little lower before turning back around (see chart below):

Jake Krimmel, Senior Economist at Realtor.com, explains: 

“That is good news for buyers, who are seeing lower asking prices and more room to negotiate, but it is also good news for sellers: Pricing to today’s demand is helping homes move and keeping more transactions alive in a high-rate environment.”

Translation – with rates still elevated, buyers can only stretch so far. Sellers who meet them where they are instead of holding out for unrealistic prices are the ones actually getting to closing. And doing that up front is always better than chasing the market later.

Buyers, You’ve Got Room To Negotiate Again

At the same time, Redfin data shows sellers now outnumber buyers by about 58%, the widest gap on record (see chart below):

That changes the power dynamics of the market – and impacts how homeowners should price their house. Nationally, about 7 in 10 markets now favor buyers or are trending that way.

• For sellers, that means standing out matters as much as pricing. With more homes to choose from, buyers are comparing you directly against the competition. So, a little flexibility, like covering closing costs or being open on timing, can be what gets your house picked over another.

• For buyers, it means more room to ask for a lower price, help with closing costs, repairs after inspection, or some combination of all 3. That’s especially true for homes that have already sat for weeks, where sellers are often the most willing to talk.

Bottom Line

Price cuts are a normal part of today’s housing market, and both buyers and sellers can use them to their advantage. Let's look at what's actually happening with prices in your neighborhood, so you know exactly where you stand before you list or make an offer.