DQNews Archived Article

California Cash Home Sales

by Real Estate Analyst John Karevoll
April, 1998

La Jolla, CA.— While most California home buyers stretch their finances to qualify for a mortgage, roughly one in ten pays cash, a real estate information service reported.

A total of 10,023 residential purchases were made with no financing during 1998's first quarter, 10.6 percent of state's 94,556 home sales for the period, according to DataQuick's Products Division.

That was down from 12.2 percent for the same period last year.

"There are two types of people who pay cash when they buy homes, rich people and retired people," said Mike Ela, DataQuick leader.

"The biggest group, retirees, often sell the large home they raised a family in, and take the proceeds and buy something smaller in a retirement community. When it comes to wealthy households, their purchase habits are always different. Between a third and a fourth of all million-dollar home purchases are cash sales. The same goes for the second home market," Ela said.

Communities with the highest percentage of cash sales:

Community		Zip		Percent
Indian Wells		92210		47.9%
Rancho Mirage		92270		45.0%
Palm Springs		92264		40.1%
Palm Desert		92211		38.0%
Sun City		92586		37.7%

Cash sales are least common in areas with a lot of newly-built tract homes, and in urban low income areas, DataQuick reported.

DataQuick monitors real estate activity nationwide and provides information to consumers, educational institutions, public agencies, lending institutions, title companies and industry analysts.

Source: DataQuick Information Systems

Media Inquiries: John Karevoll (909)867-9534

Copyright © 1998 DataQuick Information Systems.
All rights reserved.

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