The UT polled their experts on the topic of all-cash sales. Most opined that it is investors who are screwing up the market, and international buyers taking advantage of exchange rates:
What were the August all-cash sales counts around NSDCC?
Last month, there were 73 of 307, or 24%, of detached-home sales that were reported as all-cash sales:
| Town or Area | |||
| Cardiff | |||
| NW Carlsbad | |||
| SE Carlsbad | |||
| NE Carlsbad | |||
| SW Carlsbad | |||
| Carmel Vly | |||
| Del Mar | |||
| Encinitas | |||
| La Jolla | |||
| RSF | |||
| Solana Bch | |||
| Totals |
A review of the 73 revealed that approximately 14 were purchased by flippers or investors, based on the price paid, and agents involved. In other words, roughly 81% of the cash sales were by owner-occupants – which is great for the neighborhood!
Carmel Valley, known for its international-buyer pool, had only 11% of its sales that were consumated with all-cash.
Happy Labor Day to you and the family Jim.
I find these stats very interesting – particularly the skew toward cash deals in the more expensive neighborhoods.
Does this trend continue all the way down? I would expect to see far fewer cash deals in Oceanside, Vista, San Marcos etc.
More (somewhat-skewed) opinion on the impact of cash sales:
http://www.doctorhousingbubble.com/california-middle-class-dream-middle-class-income-california-real-estate-market/
Cash/Totals – Sales for August:
Oceanside: 23/131
Vista: 20/75
San Marcos: 13/75
Totals: 56/278 = 20%
Lower all-cash percentage than NSDCC but there could be more investors financing their purchases and then renting. The rents combined with lower prices are better bets for investors.
Happy Labor Day to you and the fam too! How’s the patio looking?
Thanks for the stats – interesting to see who decides to put money where.
Patio is getting closer every weekend – this heat wave set me back a few weeks. We’ll be ready to BBQ by Thanksgiving!