In 2012 and 2013, Santa Clara County saw many single family homes selling for all cash, no loans. The peak may have been in March 2012, when the percentage of all cash sales was a whopping 25%. That was the beginning of a long housing boom, and today the percentage of all cash sales in Santa Clara County has settled down significantly, though it is still in double digits.
Today I crunched the numbers on MLSListings.com (first pulling the number of sales per month, then the number of cash sales, and after exporting the data to excel, did the math to get the percentages).
All cash sales, month by month, in Santa Clara County (single family homes)
February is almost over so I included this month in the formula for all cash sales. Our market is red hot, and it’s interesting to see that we have the largest percentage of cash sales in almost 3 years.
I also spot checked the last 30 days for condos and townhomes, and on average the townhomes had 13% selling all cash, no loans, and the condos were at 17%. For all of these home types combined, the average of all cash sales was at 18%.
During the early part of the downturn, 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).
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, the market is hotter than a year ago – and I don’t see that trend changing soon.