C
ities in the Southwest and South are leading the way when it comes to all-cash home purchases, with Albuquerque, New Mexico, taking the top spot. A staggering 71% of homes bought in Albuquerque were paid for entirely in cash, more than double the national average of 34.6%. This is likely due to the city's relatively affordable housing market and its appeal to investors.

    Albuquerque has long been a leader in all-cash purchases, with the gap between it and other cities growing. According to Realtor.com senior economist Joel Berner, this is because properties in the Southwest are generally more affordable than in other parts of the country.

    The top 10 cities for all-cash deals were all located in the South and West, including three in Florida, two in Texas, and one each in New Mexico, South Carolina, Nevada, Alabama, and Tennessee. These cities tend to have lower median list prices, making cash purchases more feasible.

    In Myrtle Beach, South Carolina, 55.8% of homebuyers paid entirely in cash, with a median list price of $340,000. North Port, Florida, came in third with 47.4% all-cash deals and a median list price of $474,224.

    All-cash offers have several advantages over traditional mortgage transactions. They tend to close faster, often within weeks, rather than months. Sellers also prefer buyers who can make an all-cash offer, as it reduces the risk of the sale falling through due to financing issues.

    While all-cash deals are on the rise, they still account for a minority of home purchases nationwide. Real estate investors and vacation-home buyers tend to dominate this market, followed by repeat buyers who often have the funds from selling their previous property to put toward their next purchase.