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August 10, 2020

Cash Sales Decline in SF Covid Market

606 Diamond

Cash buyers appear to be receding into the background these days as the San Francisco market adjusts to corona’s financial fallout.

It wasn’t so long ago that a quarter of single-family home and condo buyers paid cash. However, cash sales represented only 14% of all house and 12% of condo transactions from April to early August.

There was a smattering of overbidding for single-family homes, with only ten selling for 20% or more over the list price. The biggest overbid was at 606 Diamond (photo above, courtesy of Park North Real Estate), a 2BR/1BA, 1080 sq ft Noe Valley house listed for $1,128,000. Of course, the list price is probably more suitable for a large one-bedroom condo in Noe Valley. But it obviously generated enough activity to convince a cash buyer to pony up $1,750,000—55% over the list price.

Condos, on the other hand, are mostly selling for at or under asking when a cash buyer steps in. In fact, there’s a two percent average underbid for cash sales. Only eleven of the 76 condos sold for cash closed for above asking, in neighborhoods like Nob Hill, Presidio Heights, Duboce Triangle, Pacific Heights, and the Marina.

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