Southern California Real Estate – “RealtyTrac estimated that in California, the majority of all-cash buyers are investors, second-time homeowners, and buyers from overseas” …
Southern California Real Estate:
“All Cash” Transactions Widespread
In recent reports we’re finding that “All Cash” sales of homes in Southern California are a much more significant part of the market than we’ve normally seen before.
Statewide we’re seeing one out of three homes being sold with no loan involved. In some areas … mostly more “high-end” areas and those preferred by foreign investors … we’re seeing up to 60%of all transactions being done on an “all cash” basis.
Here’s an explaining the details article by Bianca Barragan in Curbed L.A.:.
http://la.curbed.com/ Fri, 09 May 2014 19:41:02 GMT
One in three residences sold in California in the first quarter of 2014 was paid for all in cash, with some of the highest percentages of completely-cash sales in the wealthy communities of Beverly Hills, San Marino, and Arcadia. (In Arcadia, nearly 60 percent of sales last quarter were all-cash.) …
Investors Squeeze “Normal” Home Buyers Out Of The Market
It’s an interesting market we have lately here in the San Gabriel Valley. The most recent news shows that prices may have begun to level off a bit in our area. But, that’s at the end of what’s been a steep rise. Our prices in areas like Arcadia, for instance, are now higher than they were at the last peak of the “bubble” market … before the economic meltdown of the last decade. Additionally, the influx of “investor buyers” and “foreign money” into the market has brought with it this onslaught of “all cash” transactions. Most “normal”, individual buyers can’t compete with “all cash” offers, and many simply won’t complete with the current prices, preferring to wait for a “pullback”, if there is one.
What this means is simple, and it’s been reported here in other posts: our current market has basically pushed the “normal”, individual home buyer out of the market, and the market is now being driven by “investor” buyers and a glut of “foreign money” brought to the table by folks who simply have more faith in our Southern California real estate market than they do in the market in their native country.