Cash Buyers a Big Percentage in California

The Wall Street Journal released an interesting article about the number of cash-buyers in certain markets.

They show Stockton, CA which is quite a depressed market at 29%, that is where I guess the Inland Empire would be.  Los Angeles County is at a more reasonable 18.7%.  They said in 2006 it was more like 12%.

It is just absolutely crazy that Miami, Florida is over 50%.

Here is a report from CAR on the historical ALL Cash transactions (this took a long-time to find).

I wonder how many of these cash buyers are investing for short-term or long-term and how many of them are planing to refinance their properties?

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7 Responses to “ Cash Buyers a Big Percentage in California ”

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  2. Steve –

    What do you think the reason is that those top few cities have so many cash buyers compared to other areas? Do you think people from other states are investing heavily in these areas?

  3. Steve says:

    I think financing is really tough right now for anyone. A lot of the places with more ‘distressed’ properties have a lot of cash activity.

    My guess is Miami many of the transactions are condos which are extremely difficult to finance right now.

  4. John says:

    Stockton is not in the Inland Empire. the Inland Empire is in southern California and includes Riverside and San Bernardino Counties

  5. Steve says:

    Hi John – the post says, I will clarify the wording of the post, but when I said, “that is where I would guess the Inland Empire would be,” I was referring to the percentage of cash buyers… not the geographical location.

  6. Codrin says:

    Another great post!
    John, what Steve meant to say is that the Inland Empire is typically on par with LA at 19% and then he himself accounts for the extra 10%… it’s quite remarkable.
    Steve, in relation to your comment on short vs. long, i wonder how much of it is smart vs. dumb money, and how that rising percentage will effect discounts?

  7. Steve says:

    Dumb money is a relative conversation… We’ve sold one retail deal cash and I know quite a few other investors have too.

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