Numerous homebuyers are putting out all-cash offers as they try to gain an edge over competitors in the bidding process for their next home.
Ten markets in particular are seeing the biggest increase in these deals, according to Realtor.com.
Seeing the biggest influx of cash is Reno, Nev. The area, which is located near the Nevada-California border and about three and a half hours from San Francisco, has recently attracted a slew of workers from the tech industry. In fact, most of the cash offers are coming from California residents, the outlet reported.
In January and February, about 51% of offers were in all cash, an increase from about 29% a year ago, according to Realtor.com.
The top 10 metros with the highest number of cash offers spanned the country, with Racine, Wis., coming in at a close second. The share of all-cash offers in Racine during that same two-month span was about 40%. Meanwhile, Greenville, S.C., held the third spot, where 38% of sales were all-cash transactions.
Overall, within the first two months of 2021, home sales made in cash offers increased by 5% within the 300 largest metropolitan areas compared to the same time a year ago, according to the real estate listings website that cited sales data from CoreLogic, a real estate analytics firm.
Most homebuyers will generally rely on mortgages to pay off their house. However, real estate investors, consumers looking for second homes, international purchasers and even older homebuyers are more likely to make an all-cash bid, according to Realtor.com.
This effectively gives them a greater chance at securing a home.
"If you have to compete with other potential buyers, an all-cash offer puts you in a more competitive spot," Danielle Hale, chief economist at Realtor.com, said.
Realtor.com used CoreLogic data in order to compile a list of the metros seeing the biggest jump in cash sales in the first two months of the year compared to pre-pandemic times.
Here are the top ten metros and their median list price in April:
- Reno, Nevada: $524,500
- Racine, Wisconsin: $289,200
- Greenville, South Carolina: $323,950
- El Paso, Texas : $240,925
- Clarksville, Tennesse: $322,650
- Torrington, Connecticut: $425,000
- Kahului, Hawaii : $891,500
- Canton, Ohio: $186,900
- Claremont, New Hampshire: $327,000
- Bellingham, Washington: $499,450