We’re currently seeing almost a quarter of all buyers paying cash for single-family homes and condos this year. This is likely due in part to higher interest rates. Here’s the latest:
Single-Family Homes
The number of house cash sales over the past five years topped out in 2018 with 464, dipping below 400 in 2019 and 2020 and then popping up to 433 in 2021. However, there was another dip to 360 cash sales in 2022, and we’ve seen 221 year-to-date (YTD):
# Sold for all cash YTD 221 (18.6% of all 1,185 homes sold)
Median closed price $1,720,000
Average overbid 4%
# homes with 20% or more overbids 43
Neighborhoods with most cash sales Bernal Heights (10); Noe Valley (14); Outer Sunset (13); Glen Park (10); Parkside (10)
Most aggressive cash overbids
270 Precita / Bernal Heights / $1,398,000 / $2,011,000 / 44%+
2454 14th Ave / West Portal / $1,695,000 / $2,425,000 / 43%+
1647 38th Ave / Outer Sunset / $1,180,000 / $1.6M / 36%+
705 Peru / Excelsior / $1,180,000 / $1,570,000 / 33%+
216 Magellan / Forest Hill Extension / $2,395,000 / $3,125,000 / 30.5%+
(Photo above of 270 Precita courtesy eXp Realty of California Inc.)
Condos
The condo market saw a slightly different activity level over the past five years. 2018 saw 524 cash sales, but those numbers dropped in 2019 (433) and 2020 (309). However, they peaked in 2021 (529) and then dropped down to 470 in 2022.
# condos sold for cash YTD 297 (23% of total sold)
Median price $1,350,000
Average, uh, underbid Buyers paid an average of 2% under asking.
# condos with 20% or more overbids 2
Biggest cash overbids The 2BR/2BA , top-floor condo in the Marina at 3350 Scott was listed for $1,895,000 and closed for $2,275,000 (20%+). The only othe big overbid belonged to 1352 Dolores in Noe Valley. That 2BR/2BA unit was listed for $995,000 and sold for $1.2M.
(Data above based on reported sales from Jan-Sept 15, 2023 in the Multiple Listing Service.)