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A growing number of wealthy people in the U.S. are buying expensive homes using all cash instead of taking out loans. According to a new report by Coldwell Banker Real Estate, more than half of the agents who work with luxury homes said they’ve noticed more buyers choosing to pay fully in cash this year.
About 34 per cent of agents said there’s been a small increase in cash buyers, while nearly 17 per cent said they’ve seen a significant jump. On the other hand, only around 4 per cent said that buyers are moving away from cash deals. For nearly 45 per cent of agents, cash purchases have stayed about the same so far this year.
One of the main reasons behind this trend is high mortgage rates. Many wealthy buyers are avoiding loans because interest rates are too high. Instead, they are using their savings, selling stocks, or using money earned from selling other properties to buy homes outright. It’s a way to avoid debt and still make smart financial decisions.
Even with some uncertainty in the economy, most rich buyers are continuing to invest in real estate. In fact, 68 per cent of agents said their wealthy clients are either keeping their current properties or buying more. Experts say that real estate remains one of the safest long-term investments, even when other markets feel unstable. That’s why more investors are putting their money into property.
These buyers are also thinking more carefully about their purchases. Rather than only focusing on looks or luxury features, they are now paying attention to things like taxes, location, and the home’s long-term value. They want their purchases to make sense financially, not just be showy.
The report also looked at different types of wealthy buyers. Ultra-high-net-worth buyers, who have over 30 million dollars in assets, are still very active in the market. Meanwhile, people with a net worth between 1 and 5 million dollars are being more cautious, likely because of concerns about the economy.
When it comes to sales numbers, luxury single-family homes saw a small increase in both the number of homes sold and the prices. Sales went up by 1.7 per cent compared to last year, and sale prices rose by 1.8 per cent. However, sales of luxury condos and other attached properties dropped by 8.1 per cent, though their average prices still rose by 8.4 per cent.
There are also more luxury homes available now than before. From January through May, the number of single-family homes on the market grew by almost 20 per cent, and attached properties went up by nearly 15 per cent. Across the entire U.S., active home listings, including houses, townhomes, and condos, crossed over one million in May. That’s the first time this has happened since the winter of 2019.
Overall, the luxury real estate market in 2025 is strong, especially among high-end buyers who are turning to cash purchases to stay ahead financially. While economic uncertainty has made some cautious, many wealthy individuals still see real estate as a reliable way to grow and protect their money.