Share of All-Cash Home Purchases Reaches 32-Year High
Homebuyers paid with cash in more than 11% of all new-home sales in the final […]
Homebuyers paid with cash in more than 11% of all new-home sales in the final quarter of 2022, the highest share since 1990.
After climbing for each of the past four quarters and six of the last seven, all-cash home purchases accounted for 11.2% of new-home sales in the fourth quarter of 2022, the largest share since 1990, according to the most recent Quarterly Sales by Price and Financing from the U.S. Census Bureau.
The median cash price fell from $450,600 to $370,900 during the fourth quarter of 2022, but regardless of financing type, home prices rose on an annual basis in 2022, the National Association of Home Builders’ Eye on Housing reports.
Different sources of financing also serve distinct market segments, which is revealed in part by the median new home price associated with each. In the fourth quarter, the national median sales price of a new home was $467.700. Split by types of financing, the median prices of new homes financed with conventional loans, FHA loans, VA loans, and cash were $531,400, $330,200, $498,200, and $370,900, respectively.
