Who needs a mortgage when you have greenbacks to spare?
Not the wealthy, and certainly not investors, both of whom appear to be saturating California’s real estate market these days. The latest sign: Cash purchases of homes in the Golden State hit a record last year, accounting for 32.4% of all home sales.
“It’s clear that a lot of today’s housing market recovery is being fueled by people putting their own money into homes,” John Walsh, president of real estate firm DataQuick, said in a news release detailing the new data. “Some cash buying is part of a normal housing market, but we’re at twice that normal rate.”
And those buyers appear to be driving up prices. The median home price for cash purchases last year was $205,000, a 17.1% increase from the year before. That means that cash buyers are either paying more for homes or increasingly purchasing pricier properties.