During the pandemic home buyers used all cash offers to make their home purchase happen and last year about one-third of home purchases were cash. It seems the wealthy are purchasing these homes, moving from rich parts of the cities to the suburbs, as well as retirees, and buyers who are using home-equity proceeds, investors and foreign buyers.
One advantage to purchasing a home in cash is because you don’t have to take out a loan with 6%+ interest rates. Those who sell their home in pricier cities are using their equity to purchase in more affordable areas. In 2022 about one-fifth of homes in Washington, DC and its surrounding areas were purchased with cash while in Frederick, MD that rate is doubled.