Cash is still king, at least in California. With it being difficult to even qualify for a mortgage right now, the market has definitely gone in favor of cash investors. California saw almost 146,000 homes bought with cash transactions in 2012.
According to DataQuick, a San Diego based real estate data firm, the number of cash sales in the state in 2007 were 40,000.
John Walsh, President of DataQuick says, "It's clear that a lot of today's housing market recovery is being fueled by people putting their own money into homes. Some cash buying is part of a normal housing market, but we're at twice that normal rate."
From 1991 to 2012, the average percentage of cash sales in the California housing market was 15.6%. Just in 2012 those number soared to 32.4%. Here is the breakdown of all cash sales throughout the state of California.
Walsh says the demographic of cash buyers has expanded out of the normal investor box. The new investor pool ranges from, wealthy home buyers, retirees, empty nesters, and even overseas investors.
If you can qualify for a mortgage, now may be the right time to buy, before prices skyrocket along with your rent…
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