One in 10 first-time home buyers paid all cash in the year to June, the highest share since the National Association of Realtors started collecting the data in 2003.
By the numbers: First-time buyers made up 22% of purchases, near a record low, while the median age of a first-time buyer held at a record high of 40.
- Those who financed had a median age of 38, and those who paid all cash had a median age of 54.
Zoom in: All-cash first-time buyers were more likely than financed buyers to use an inheritance, at 28%, or proceeds from selling an inherited property, at 21%.
What they're saying: "Inheritances are really driving this," said Jessica Lautz, deputy chief economist at NAR. "They waited a significant period of time for that generational transfer of wealth to come through."
Between the lines: More first-time buyers tapped their own assets, such as a 401(k), stocks or cryptocurrency, than took help from family or friends, a reversal Lautz links partly to the awkwardness of asking parents for money at 40.
The big picture: Jason Miller, a broker in St. Cloud, Minnesota, said he saw virtually zero all-cash first-time buyers in his first 15 years in the business and now sees them regularly.
Why it matters: When three of 10 offers on a house arrive in cash, a financed buyer needs a bigger down payment, a cleaner contingency package or a faster close to stay in the running.
