Earlier this year, there were very few listings, but a lot of cash buyers. California has one of the highest unemployment rate, yet they have a lot of cash buyers! I represented a few myself! Where are they coming from? Most of these cash buyers are “mom and pop” investors who pull their money together and buy real estate at rock bottom prices; others are rich parents helping their young adult child buy their first home; or middle class individual dipping in their savings or IRA and investing in real estate. One thing they have in common is that they are not “professional” real estate investors, and mostly look at the “low price” as the basis of their home buying decision.
And they are right in doing so as both real estate prices and mortgage rates are at low levels! But, Cash buyers! beware! Real Estate in California has gone up at least by 15% since January, 2013; Some of the listing prices are ridiculously high, almost unsustainable in the long run! Cash buyer’s are dwindling; But for a few of you out there, this article could help you. Go through your due diligence before you buy as it could cost you more in the long run!