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The number and percentage of all cash sales (all cash, no loans) both rose in June. It’s interesting to see as the market is softening for most buyers.

Not only did the number rise month over month, but it also rose year over year. We have to go back to 2018 (which was an extremely deep seller’s market) to find more all cash deals in June.

Number of cash sales in Santa Clara County for Single Family Homes

Percentage of All cash sales, month by month, in Santa Clara County (single family homes)

Next, the actual percentage of sales among closed houses:

Percentage of all cash sales for single family homes in Santa Clara County


Note that this is the highest percentage for June of any year since 2017.

What does it mean that cash buyers are an increasing percentage of the closed sales?

  • Rising interest rates not only don’t harm the all cash, no loans buyers, it actually helps them as it weakens their competition
  • These buyers may be feeling more confident with the softened market and easier buying conditions generally
  • My thinking when we saw interest rates rising is that it would help the mortgage free buyer more than anyone else – that seems to be the case.

Historically, what has happened with the percentage of all cash sales in Santa Clara County?

During the early part of the downturn (2008 – 2010), the percentage of all cash buyers was not only in single digits, but for the couple of windows I pulled up, it was in the 3% to 4% range (spring 2006 and spring 2007).

This is a data point to watch.

When the ratio is low, for home sellers, it may suggest that conditions are not as strong as in recent months for selling. For buyers, it may imply that conditions are a little better for writing offers closer to list price and for keeping all of your contingencies. We’ll need to chart other numbers, too, such as the average sales to list price, the absorption rate, etc. to be sure.

Right now, though, about 12% of the sales are all cash, and it’s really NOT an easy time for buyers as most sales involve overbids (often 110 – 120% or more of list price) and no contingencies.

I think you could read the percentage of all cash buyers as a data point of home buyer’s confidence in the real estate market. Right now, that percentage is not too different from other Marches in this pandemic period. So it seems, generally, to be holding steady.



Related Reading:

Why do sellers care if the offer has a loan or is all cash?

Cash offers: what do you need to know if buying “all cash”?

What is a contingent offer?





  • Mary Pope-Handy

    Silicon Valley Realtor, selling homes in Los Gatos, Saratoga, San Jose, Silicon Valley, and nearby since 1993. Prolific blogger with a network of sites.