A buyer-friendly market combined with economic uncertainty has led to the lowest March share of all-cash home purchases since 2020.

According to an analysis published by Redfin data journalist Dana Anderson, 28.8% of U.S. homebuyers paid in all cash in March — down from 29.8% during the same month in 2025 and matching the March share from 2021. In 2020, 26% of purchases were completed in all-cash transactions.

Redfin attributed the decrease to “hundreds of thousands more home sellers than buyers in the market,” which makes buyers less likely “to make cash offers to stand out in bidding wars.”

The share of cash transactions is falling partly because mortgages rates had eased in March to 6.18%. In 2023, mortgage rates hit nearly 8% — a two-decade high — which led to all-cash purchases peaking at nearly 35%, the report cited.

Another factor playing into the shift is the desire for buyers to hold onto their cash due to economic uncertainty caused by the war against Iran, rising oil prices, inflation and recession concerns.

“When the economy is topsy turvy, even affluent buyers who can afford to pay cash may be inclined to preserve money in savings accounts or other investments rather than tie it up in a home,” Anderson wrote in her analysis, adding that “some buyers are opting to finance their purchase to keep cash on hand in case of emergency.”

Affordable metro areas like Cleveland and Detroit, which have relatively low home prices, had a higher rate of cash purchases. So did regions that draw retirees and second-home buyers, like the Florida cities of West Palm Beach and Fort Lauderdale.

The analysis also showed West Coast metro areas were the least prevalent for cash-only transactions. Seattle saw only 17.6% of its purchases made in cash, followed by the California metros of Oakland, Sacramento, Los Angeles and San Diego.