Almost every conversation about the housing market right now circles back to the same worry: mortgage rates. Are they too high? Will they drop? Should I wait? It’s a fair question for most people. But there’s a whole group of buyers out there who genuinely don’t lose a minute of sleep over it, because rates don’t touch them at all. They’re paying cash. And there are a lot more of them than you might guess.
I’ve been doing this in the Seattle area since 2003, and I can tell you the cash buyer is having a real moment. So let’s talk about who they are, where the money is coming from, why they hold such a strong hand right now, and, just as importantly, what anyone considering a cash purchase should think through before they do it.
Cash is having a moment
This isn’t just a feeling. According to the National Association of Realtors, all-cash home purchases have climbed to record highs, recently running somewhere around a quarter to nearly a third of all buyers depending on the month. That’s a striking number. It means in a market where higher rates are supposedly freezing everyone in place, a big slice of buyers are simply stepping around the rate conversation entirely.
Where the money is coming from
When people picture a cash buyer, they often imagine someone ultra-wealthy. Sometimes, sure. But in my experience the money usually comes from one of three very ordinary places.
Investments. Some buyers sell stock, whether it’s appreciated shares, equity compensation from a tech job, or a chunk of a portfolio, and roll the proceeds straight into a home. Given how many people in our region hold stock through their employer, this one is especially common on the Eastside.
Inheritance. We are in the middle of what’s being called the “great wealth transfer.” Cerulli Associates projects that around $124 trillion will pass from older generations to their heirs through 2048, with a huge share of it tied up in real estate and investments. As that wealth moves, a lot of everyday people are suddenly in a position to buy a home outright for the first time in their lives.
Downsizing proceeds. This is a big one here in Puget Sound. Someone who bought a home decades ago and watched it appreciate enormously can sell, take the proceeds, and buy their next, often smaller, home entirely in cash, with money left over. When your current home has done the heavy lifting, you don’t need a mortgage for the next one.
Why cash buyers hold such a strong hand right now
Here’s the part that matters if you’re one of these buyers, or competing against one. Cash is powerful in any market, but it’s especially powerful in this one.
You’re immune to rates, obviously, so the single biggest thing scaring off your competition doesn’t apply to you. Your offer is cleaner and less risky for a seller, because there’s no financing contingency and no appraisal-driven lender to satisfy, which makes sellers breathe easier and often pick you even over a slightly higher financed offer. You can usually close faster. And in the more balanced and buyer-leaning conditions we’re seeing across much of the country, cash gives you real negotiating leverage, room to ask for a better price or concessions that a financed buyer might not get. On top of all that, you skip decades of mortgage interest and never carry a monthly payment.
But cash isn’t a no-brainer. Here’s what to think through
Now let me put on my “trusted advisor” hat, because this is where I see people move too fast. Buying in cash is a genuine advantage, but it comes with trade-offs you should weigh with the right professionals, not just your gut.
If you’re selling stock to fund the purchase, you may trigger capital gains tax on the appreciation, and the timing of that sale can matter a lot. If your cash is coming from an inheritance, there’s better news, inherited assets often receive a “stepped-up” cost basis, which can significantly reduce capital gains if you sell them, though here in Washington you’ll also want to be aware of our state estate tax. And if you’re downsizing, remember the primary-residence capital gains exclusion (up to $250,000 for single filers or $500,000 for married couples) only shields so much, so a highly appreciated home may still produce a taxable gain.
Beyond taxes, there’s the simple matter of liquidity. Sinking most of your cash into a house means it’s no longer available for emergencies, opportunities, or investments that might earn more elsewhere. That’s the opportunity cost of paying cash, and it’s a real one. The good news is you’re not always locked in: many buyers purchase in cash to win the deal, then use delayed financing or a cash-out refinance afterward to pull some equity back out, potentially at a lower rate down the road.
None of this is a reason not to buy in cash. It’s a reason to do it with your eyes open, and with a CPA or financial advisor in the room. I’m a real estate expert, not a tax advisor, and the smartest cash buyers I work with lean on both.
A few questions I’m hearing a lot
Why are so many people buying homes in cash right now?
Two reasons: higher rates have pushed some buyers to skip financing entirely, and a historic amount of wealth is changing hands. All-cash purchases have hit record highs, recently around a quarter to nearly a third of buyers per NAR, funded by stock gains, inheritances, and proceeds from selling a long-held home.
What are the advantages of buying a house with cash?
You’re not affected by mortgage rates, you can often close faster, your offer is cleaner with fewer contingencies, and you tend to have more negotiating leverage, especially in balanced or softening markets. You also skip years of mortgage interest and monthly payments.
What should I consider before selling stocks or using an inheritance to buy a home?
The tax and liquidity implications. Selling appreciated stock can trigger capital gains tax; inherited assets may get a stepped-up basis; and Washington has a state estate tax. Tying up cash in a home also reduces your liquidity. Talk with a CPA or financial advisor before deciding.
Can I buy a home in cash now and get a mortgage later?
Often yes. Some buyers pay cash to win the deal, then use delayed financing or a cash-out refinance later to pull equity back out, potentially at a lower rate. Rules and timelines vary by lender, so confirm the details with a mortgage professional.
Thinking about buying, with cash or otherwise?
Whether you’re sitting on stock you’re ready to move, an inheritance you want to put to good use, or the proceeds from a home you’ve owned for decades, buying in cash can be a powerful play in today’s market, when it’s done thoughtfully. If you want to talk through whether it makes sense for your situation, and what it would look like in our local market, let’s connect. Reach me and the team anytime at [email protected].
Rebecca “Reba” Haas has been helping people buy, sell, and invest across the Seattle area and greater Puget Sound since 2003. She leads Team Reba at RE/MAX Metro Eastside.
Sources: National Association of Realtors (all-cash buyer share); Cerulli Associates (great wealth transfer projection). This article is general information only and is not tax, legal, or financial advice. Tax treatment of stock sales, inheritances, and home sales depends on your individual circumstances, consult a qualified CPA, financial advisor, or estate attorney before making decisions.
