Cash buyers are losing some of the ground they gained during the pandemic housing boom, creating a slightly more favorable market for borrowers relying on mortgage financing.
All-cash purchases accounted for 31.4% of home sales during the first four months of 2026, down from 32.3% during the same period last year, according to a new Realtor.com report.
The change was modest, but the underlying sales figures showed cash buyers pulling back faster than the market overall. The number of cash transactions fell 11.2% year over year, compared with an 8.5% decline in total home sales.
For mortgage originators competing for limited purchase business, that suggests financed buyers captured a slightly larger share of a shrinking market.
“Cash buyers aren’t disappearing; they’re simply becoming less dominant as the housing market finds its footing,” said Hannah Jones, senior economist at Realtor.com. “More inventory and moderating prices are giving financed buyers more opportunities to compete.”
The national median sale price rose only 0.2% year over year during the period covered by the report. That was down from 1.8% growth in 2025 and well below the 15.4% increase recorded at the market’s 2021 peak.
Slower price growth, improving inventory, and fewer bidding wars may reduce some of the pressure on borrowers who cannot waive financing contingencies or close as quickly as cash purchasers.
Still, a 0.9-percentage-point decline in cash share does not represent a wholesale reversal. Buyers without financing continued to account for nearly one in three transactions nationally, and the prevalence of cash varied widely by market and price range.
Certainty Still Matters
The advantage of a cash offer has shifted along with the housing market.
During the pandemic-era buying frenzy, cash frequently helped buyers prevail in bidding wars. In a slower market, its appeal increasingly lies in the certainty it offers sellers: fewer financing-related contingencies, less risk of a failed closing, and potentially shorter transaction timelines.
“Cash still matters, but today its biggest advantage isn’t just winning bidding wars,” Jones said. “It’s also giving sellers confidence that a deal will close quickly and with fewer surprises.”
That leaves an opening for originators who can make financed offers appear more dependable. Strong preapprovals, early verification of income and assets, realistic closing timelines, and communication with real estate agents can help reduce the perceived risk of accepting a mortgage-dependent offer.
The data does not mean financed buyers suddenly have the upper hand. It suggests that execution and certainty may matter more than they did when sellers could routinely choose among multiple cash bids.
Cash Activity Rises In Several Markets
The national retreat was not uniform.
Pittsburgh recorded the largest year-over-year increase in cash share among major metropolitan areas, rising 6.8 percentage points to 32.2%. Realtor.com said the actual number of cash purchases also increased in Pittsburgh, Austin, Texas, and San Francisco.
Austin’s cash share rose 2.7 percentage points to 35.2%, while cash transactions increased in number despite the broader market slowdown. In San Francisco, cash purchases rose 7.7% year over year, which Realtor.com attributed partly to technology-sector wealth, stock-based compensation, and liquidity events.
Cash buyers represented the largest share of transactions in Miami, at 43.2%, followed by Kansas City, Missouri, at 38.9%; Houston, at 38.8%; San Antonio, at 38.7%; and St. Louis, at 37.5%.
Among states, Mississippi had the highest cash share at 47.2%, followed by Montana at 45.9%, New Mexico at 43.8%, Missouri at 42%, and Florida at 41.3%.
The lowest cash shares were concentrated in several expensive employment centers where mortgage-reliant buyers continued to account for more of the market. Cash purchases represented 16.4% of sales in Seattle, 18.2% in Washington, D.C., 18.8% in Denver, and 20.2% in San Jose, California.
Cash Concentrated At Both Price Extremes
Cash purchases remained particularly common at both ends of the price spectrum.
More than two-thirds of homes selling for less than $100,000 were purchased without financing during the first four months of the year. Investor activity, credit barriers, and the limited availability of mortgage products for low-balance properties can all contribute to high cash usage in that segment.
At the opposite end of the market, cash buyers purchased more than 40% of homes priced above $1 million and a majority of homes selling for at least $2 million.
“Cash will remain an important part of housing, particularly at the high and low ends of the market, but a more diverse buyer pool is a positive sign for market activity,” Jones said. “When more buyers can compete using different paths to purchase, the market has the potential to become healthier and more balanced.”
For originators, the immediate takeaway is more restrained: cash buyers remain formidable competitors, but they are no longer gaining ground nationally. In a purchase market short on volume, even that small shift gives financed borrowers, and the originators representing them, a little more room to compete.
