Why Cash Buyers Are Keeping the Real Estate Market Steady

“Are we really on the verge of another Great Recession-style housing crash?” It’s a question I hear all the time, and I get it. The market has slowed down, rates are high, and the headlines can be unsettling.

But from what I’m seeing, today’s real estate landscape is very different from what we lived through 15 years ago, and there’s one key reason why: cash purchases.

The power of cash. Right now, about one in three homes in 2025 are being bought with cash. That has changed everything.

Even though the real estate market hasn’t been great recently, it also hasn’t been terrible. We’ve seen fewer transactions and mostly flat prices, with only slight depreciation in some areas. Nothing like what we saw during the Great Recession, when Tampa home prices were dropping 10% a month and sales hit historic lows.

The difference today is simple: cash is everywhere. Cash buyers don’t rely on financing or appraisals, and that stability keeps the market from spiraling.

Wall Street’s influence. A large share of that cash comes from Wall Street. Hedge funds and big investors have poured billions into residential real estate, buying homes outright for long-term rentals. When foreclosures start to surface, they’re ready to buy, no loans, no appraisals, just cash.

Because of that, banks don’t have to list distressed homes at low prices. They sell them in bulk debt deals instead, so those individual sale prices never hit the open market or drag values down. Banks and hedge funds have figured this out, and it’s a big reason I don’t believe we’ll see another major drop in home prices.

“Rising cash sales have created a new kind of stability that the market hasn’t seen before.”

What’s different about lending? Another reason the market is steadier is that mortgage lending is far stricter than it was 15 years ago. Back then, it was easy to qualify for multiple loans, but not anymore. Risky lending is limited, and banks don’t rush into foreclosures.

Instead, they work out forbearance or deed-in-lieu deals to keep homes off the market. When hedge funds buy troubled assets, they do it in bulk, so those sales never show up individually or drag down neighborhood values.

The numbers behind the trend. Cash is dominating across the country, especially at the extremes of the market.

• About two-thirds of homes under $100,000 are bought with cash.
• Over 40% of homes priced above $1 million are bought with cash.
• For homes over $2 million, that number jumps to more than 50%.

Among states, Mississippi, Montana, Idaho, Hawaii, and Maine have the highest cash share between 45% and 50%. Major cities like Miami (43%), San Antonio (39%), Kansas City (39%), Birmingham (38%), Houston (38%), and St. Louis (38%) also lead the nation in cash purchases for the first half of 2025.

By contrast, higher-cost markets such as Seattle, San Jose, Denver, and Washington D.C. have the lowest cash shares. Markets like Tampa sit somewhere in the middle but are still higher than pre-pandemic levels.

How cash and strategy stabilize the market. A large amount of cash acts as a buffer for real estate, preventing the wave of foreclosures that triggered the last crash. Lenders now handle distressed properties differently, and banks and hedge funds work together using forbearance and bulk purchases to keep homes from flooding the market.

These protections created a kind of stability bubble, helping the market survive even through the pandemic. While this raises questions about whether the market is truly free, it is far more stable today.

The bottom line is this: today’s housing market is protected in ways it wasn’t before. Cash buyers, stricter lending, and smarter strategies from banks and investors have created a cushion that prevents another crash. It may not be a perfect system, but it’s holding. And for homeowners and buyers, that’s something worth feeling confident about.

If you’re looking for next steps, whether it’s a quick cash offer, selling with an agent, or a VA or FHA streamlined refinance to lower your interest rate even if you don’t have equity, you can reach out to (813) 359-8990 or email info@theduncanduo.com.

For cash offers, visit theduncanduo.com, and for refinancing options, check out CitywideTampa.com.