ResiClub: Cash is King

Cash is king: Higher mortgage rates have translated into a bigger market share for all-cash buyers

ResiClub used data from Parcl Labs to highlight changes in the U.S. housing market, focusing on the effects of rising mortgage rates on purchasing patterns. Parcl Labs' analysis showed that the share of all-cash buyers in the nation's largest housing markets increased to 33.5% of all home purchases in Q4 2023, up from 23.8% two years earlier. Despite an overall slowdown in home buying, with existing home sales at their lowest since 1995, the proportion of all-cash transactions has expanded, indicating a shift towards more liquid transactions in a strict credit environment. Parcl Labs' findings also pointed out regional differences, with notably high all-cash buying rates in cities like Punta Gorda, FL, and Flint, MI, compared to much lower rates in Denver, CO, and Colorado Springs, CO.

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