Cash sales, once dominant in the housing market, are now declining after a pandemic-era boom. In the first quarter of 2026, they comprised 31.4% of home purchases, a year-over-year decrease. This decline in cash sales is more significant than the overall slowdown in home sales. Increased housing inventory and normalizing prices are allowing financed offers to compete more effectively. Historically, cash offers were advantageous for winning bidding wars, but the market is less frenetic now. While cash offers still provide sellers with a swift closing, the financing process is becoming less of a hurdle. However, regional variations exist, with Pittsburgh, Austin, and San Francisco seeing an increase in cash transactions. Pittsburgh experienced a nearly 7% rise in cash sales, while San Francisco saw a 7.7% spike, attributed to AI industry wealth. Cash sales are more prevalent at both the low and high ends of the housing market price spectrum. Over two-thirds of homes under $100,000 were cash purchases, driven by investors and financing barriers. Conversely, over 40% of homes exceeding one million dollars were paid for in cash by wealthy, less price-sensitive buyers.