According to Ryan Serhant, CEO of SERHANT, today's housing market isn't just one market. It includes cash buyers, people who need a mortgage, homeowners with low mortgage rates, and builders.
Let's take a closer look at cash buyers. According to the National Association of Realtors (NAR), 27% of homes sold in September 2026 were purchased entirely with cash. That's more than 1 in 4 transactions, even as affordability remains a challenge for many buyers.
So, where is all that money coming from? It may be less about wealthy investors and more about homeowners who have built enough equity to purchase their next home outright.
According to NAR, cash buyers generally fall into three groups: homeowners selling their current property and using the proceeds to buy their next one, people purchasing a second home, and real estate investors.
That first group may be more familiar than you think. According to Cotality, the average homeowner with a mortgage has approximately $310,000 in home equity. For some, that accumulated value creates an opportunity to move without taking out another mortgage.
Buying with cash can mean no monthly mortgage payment, no need to borrow at today's interest rates, and potentially a faster closing process since there's no mortgage approval to wait for. Even if your equity doesn't cover the entire purchase, using more of it toward your next home can reduce the amount you need to borrow.
Cash purchases also vary by location. Realtor.com reported that earlier in 2026, cash buyers accounted for nearly 47% of home sales in Mississippi and 46% in Montana. Local prices, wealth, retirees, and second-home buyers all influence these numbers.
Seeing that more than 1 in 4 homes are purchased with cash might make it seem like everyone is paying upfront. But that's not the case. Nearly 3 out of 4 home purchases still involve financing, according to NAR. The numbers are even more encouraging for buyers looking at homes priced between $200,000 and $750,000. Realtor.com data shows that only about 1 in 5 homes in this price range were purchased with cash.
In other words, most buyers in this segment are also using a mortgage. You don't need to assume you're at a disadvantage just because you're financing your purchase. Understanding your budget, loan options, and local market conditions is much more important than comparing yourself to other buyers.
If you already own a home, your accumulated equity could give you more flexibility than you realize. Depending on your property's value and your financial situation, you may be able to use that equity to make your next purchase more affordable, or even buy without a mortgage.
And if you're planning to buy with financing, remember that you're still part of the majority. The key is to understand what's happening in your local market and how it affects your options.
The Bottom Line
Cash buyers are an important part of today's housing market, but their presence doesn't mean opportunities are out of reach for everyone else. Whether you're using your home equity or applying for a mortgage, what matters most is finding a strategy that works for your finances and goals.
Thinking about buying or selling a home? Contact Lake Michigan Realty. We'll help you understand your local market, explore your options, and plan your next move with confidence.
