Special Report

10 Cities Where Homebuyers Pay Cash

7. McAllen-Edinburg-Mission, Texas
> Pct. cash sales: 52.0%
> Median list price: $149,000 (21st lowest)
> Pct. institutional sales: 3.7% (33rd highest)

Just over a third of homes in the United States did not have a mortgage as of 2012. In the McAllen metro area, however, nearly 52% of homes did not have mortgages, among the highest rates in the nation. This figure was likely bolstered by low home prices and all-cash sales. More than half of all sales were all-cash in the second quarter, versus less than 40% of home sales during the same time last year. Over a similar time frame, from July 2013 to July 2014, the median listing price rose by 6.8%, better than just over half of all metro areas reviewed. However, homes in McAllen are still relatively inexpensive, with a median listing price of just $149,000, lower than most areas..

6. Orlando-Kissimmee, Fla.
> Pct. cash sales: 52.2%
> Median list price: $174,900 (42nd lowest)
> Pct. institutional sales: 7.2% (12th highest)

More than 52% of Orlando area homes were paid for in cash during the second quarter of 2014, a number that is just slightly lower than the previous quarter. With home prices in the Orlando metro area rising in the 12 months through July, short sales declined from 25% of all sales in July 2013 to 13.7% of all sales in July of 2014. Still, this was second highest proportion in the United States. The median list price rose by 9% in the year through July 2014, more than the majority of cities nationwide.

ALSO READ: The 10 Least Affordable Housing Markets in America

5. Lakeland, Fla.
> Pct. cash sales: 53.0%
> Median list price: $119,995 (4th lowest)
> Pct. institutional sales: 5.8% (19th highest)

Institutional investor purchases accounted for 5.8% of Lakeland home sales in the second quarter of 2014, which was less than half the share in the same period last year. The share of purchases conducted in cash, on the other hand, decreased only slightly. In the second quarter of 2014, 53% of sales were made without a mortgage, only four percentage points less than in the year prior. But while new homeowners were buying without a mortgage, many sellers were looking to simply get out from under theirs. More than 14% of sales were short sales, the highest proportion among all cities reviewed.