When it comes to making a solid investment you can never go wrong with real estate, and in California that holds true now more than ever. Home prices in the Los Angeles area are on the increase once again and a low inventory means that it’s a seller’s market. One of the trends we are seeing in this brisk market is that cash is king.
Buyers paying cash:
2011 was the last time we saw such a spike in cash sales. In fact, there has been such an influx of cash buyers that one of every three residences sold in California in the first quarter of 2014 was paid for all in cash. Some of the highest percentages of completely-cash sales were in Beverly Hills, San Marino, and Arcadia. Who are these all cash buyers? RealtyTrac estimated that in California, the majority of all-cash buyers are investors, second-time homeowners, and buyers from overseas.
“When you do have a home that comes for sale and there are multiple offers, you have the cash buyers often winning out because their offers are the ones that move the most quickly, so sellers are accepting those first and that’s putting the cash buyers at the front of the line,” said Daren Blomquist, RealtyTrac’s vice president.
Here are some of the numbers for Beverly Hills. As you can see, the average price homes sold for in the first quarter of 2014 have a 23% increase over the first quarter of 2013. They are spending less time on the market as well.
We are seeing similar increases as far as what homes are selling for in Malibu and Pacific Palisades as well.
Knowing what is happening in the market is absolutely imperative when it comes to buying or selling your home. Having worked in high-end real estate for the past 25 years, I have excellent knowledge of the marketplace, particularly when it comes to the Westside.
To see the full 1st quarter market report for the Los Angeles area, click HERE. If you’re interested in the Los Angeles real estate market, please visit my About Page for more information or contact me directly by clicking the “Contact Cindy” tab.