realestate

Luxury Homebuyers Increasingly Using Cash, New Data Reveals

Luxury homebuyers increasingly opting for all-cash purchases, says Coldwell Banker Real Estate report.

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uxury homebuyers are increasingly turning to cash purchases, with over half of Coldwell Banker luxury property specialists reporting an uptick in wealthy buyers paying all-cash for homes. According to the company's 2025 Mid-Year Report, 34.1% of surveyed specialists noted a "slight increase" in cash transactions, while 16.6% reported a "significant" rise.

    Mortgage rates have played a significant role in this trend, with National Association of Realtors Chief Economist Lawrence Yun attributing the shift to high mortgage rates making borrowing unappealing for many wealthy buyers. Instead, they are relying on personal savings, stocks, or funds from selling other properties to make their luxury home purchases.

    A majority of Coldwell Banker agents (68%) reported that affluent clients are maintaining or increasing their real estate exposure, with some even using cash to acquire entire properties. This trend is driven by the perceived stability and long-term value of real estate investments, particularly in uncertain economic times.

    Wealthy buyers are becoming more strategic in their purchasing decisions, prioritizing factors like affordability, taxes, and investment potential over aesthetic perfection. This shift could lead to a rise in "smart buyers" who focus on discernment and strategy rather than pure indulgence.

    The luxury real estate market has continued to show strength in 2025, with sales of luxury single-family homes increasing by 1.7% year-over-year and sale prices rising by 1.8%. However, attached luxury properties saw a decrease in sales, but an increase in median transaction price. The supply of both types of properties has increased, with luxury single-family homes posting a 19.6% jump and attached properties notching a 14.8% rise.

High-end homeowners using cash to purchase luxury properties, new market data analysis shows.