Much has been written on the impact all-cash buyers have had on the Southern California housing market in recent years, but a new study found just how prevalent these types of transactions actually are.
RealtyTrac reports that during the first quarter of the 2014, one in three home sold in the Southland were paid for in all cash. That’s the highest level since the onset of the housing recovery in 2011.
RealtyTrac Vice President Daren Blomquist told Southern California Public Radio that his firm estimates more than half of all-cash buyers are investors or second-time home owners. An influx of foreign buyers, led by the Chinese, are another large segment of the all-cash market.
Here’s what Blomquist had to say about the findings and the impact its had on the Southern California housing market:
“When you do have a home that comes for sale and there are multiple offers, you have the cash buyers often winning out because their offers are the ones that move the most quickly, so sellers are accepting those first and that’s putting the cash buyers at the front of the line,” Blomquist said.
Areas of Los Angeles County that have seen a significant number of all-cash home buyers include Beverly Hills, Arcadia and San Marino. In San Marino in particular, the all-cash buyers have largely been from overseas.
These all-cash buyers continue to hold a significant advantage in the Southern California housing market and there doesn’t appear to be signs of that changing anytime soon.