Wednesday, July 24, 2024 / by Bob Cowan
THE SITUATION REGARDING PURCHASES MADE ENTIRELY IN CASH IN ORANGE COUNTY
Purchasing a home ranks among the most impactful choices you'll ever face. In Southern California, a fiercely competitive real estate market sees both cash transactions and financed purchases playing pivotal roles. Let's explore the statistics on all-cash offers in Orange County and contrast them with Los Angeles and San Diego counties.
The All-Cash Purchase Landscape in Southern California
Many buyers and sellers are curious about the prevalence of all-cash purchases in recent years. Contrary to concerns, the frequency of all-cash transactions has remained consistent. For instance, in 2021, there were 5,427 all-cash sales, marking the highest figure in recent years. In contrast, 2020 saw the lowest number at 4,480. Current projections suggest that 2024 will see fewer than 5,000 all-cash sales, but slightly more than in 2023.
All-Cash Home Purchases in Orange County
Based on our mid-year data, it seems probable that we will exceed the total number of all-cash purchases from 2023, though not significantly. It's common for people to perceive trends even when they may not exist. Over the last decade, all-cash transactions have shown minimal variation. Despite increasing home prices, one might expect a decrease in all-cash purchases, but this expectation has not materialized.
Contrasting All-Cash Transactions in Orange County with Los Angeles and San Diego
All-Cash Home Purchases in Los Angeles
All-Cash Home Purchases in San Diego
Although Los Angeles consistently records higher transaction numbers and more all-cash purchases, the pattern remains stable. Despite the competitive nature of these markets, the percentage of all-cash transactions remains constant, indicating a balanced demand among various types of buyers.
Financed offers: Equally robust
While all-cash offers present certain advantages, financed offers are equally viable and often just as competitive. With adequate preparation and support, a mortgage-backed offer can be just as appealing to sellers.
How We Ensure Success for Financed Offers
At Orange County Real Estate, Inc., we specialize in securing acceptance for financed offers. We build seller confidence by ensuring our buyers are thoroughly prepared to complete the transaction. Here’s how we achieve this:
• Pre-Approval: Our buyers provide a robust pre-approval letter from reputable banks or mortgage companies.
• Clear Communication: We maintain open lines of communication with the seller’s agent to promptly address any concerns and demonstrate our buyer’s reliability.
• Strong Offers: We assist our buyers in crafting competitive offers that emphasize their strengths, whether they opt for cash or a mortgage payment method.
Contact us today at: 949-441-9918 (call or text)
