How common are “all cash” transactions for Silicon Valley real estate right now? Throughout Santa Clara County, they were 25% of all sales, up from 20% in October 2011, among houses, duet homes, condominiums and townhouses (class 1 and class 2, does not include mobile homes, 2-4plex or apartment buildings or raw land). What’s trending? Lots, including more cash offers.
Some areas and some types of sales are more frequently all cash than others. Here are a few quick stats for the last month (last 30 days from today – numbers from MLSListings, crunched by me – disclaimer on good intentions but no guarantee). Also, please note that this is for CLOSED SALES. As of this writing, we are seeing a huge uptick in multiple offers in all price ranges in many parts of the valley, and it seems that many are all cash or very large cash downpayments.
- Santa Clara County: 25% all cash
- San Jose (entire city): 27% all cash
- San Jose short sales: 27% all cash (down from 33% in Oct 2011)
- San Jose bank owned or REO sales: 39% all cash (38% Oct 2011)
- Short sales & REOs were 52% of all sales in San Jose in last 30 days (was 48% Oct 2011)
- Of SJ homes listed at $300,000 or less: 44% all cash (was 48% Oct 2011)
- Of SJ homes listed at/under $500,000: 33% were all cash (didn’t track in October 2011)
- Los Gatos: 9% all cash
- Saratoga: 8% all cash
- Almaden Valley area of San Jose: 10% all cash
Some of these sales will have no financing and the new owners will occupy the home. Particularly in lower priced homes, though, these are investor buyers who will be renting out the property. This is often the case with the lower price distressed properties in particular. In higher priced homes, some new owners will put financing on the property after close of escrow.
With the crazy new demands that keep coming at us from banks and new requirements being imposed on appraisers, now more than ever, cash is king. That doesn’t mean that the cash buyer will get a deep discount, but there will be a slight one in most cases and certainly preferential treatment that will create a great advantage in multiple offer situations.
Learn more about buying and selling Silicon Valley real estate with cash offers:
What’s My Silicon Valley Home Worth? Estimating the Probable Buyer’s Value (financing impacts market value)
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(all data current as of 10/17/2018)
Listing information deemed reliable but not guaranteed. Read full disclaimer.