ShareThe Washington Post
It takes more money than ever to buy a home in America right now. And nearly a third of home buyers navigating the high mortgage rates, rising home prices and low inventory are somehow buying their homes entirely in cash.
Many of the all-cash buyers are selling previously owned homes to fund their moves. But the rise of cash buys is making it even harder for first-time home buyers. Between July 2023 and June 2024, the share of first-time home buyers in the market was only 24 percent — a historic low.
“If it’s a multiple offer situation, it’s likely going to be hard to beat an all-cash offer,” said Jessica Lautz, deputy chief economist for the National Association of REALTORS®. Cash offers often move quicker and are seen as less risky for the sellers.
As cash purchases have become more common, the median age of home buyers has been ticking up and now stands at 56 years old, according to NAR’s data from July 2023 to this June. Even for first-time buyers, the median age has risen to 38 compared to 35 last year.