CASH vs. MORTGAGE: The next time you buy a home, will you get a loan or pay cash? For our last 2 listings, the buyers paid all cash. My last buyer paid $1.55M for his home – also all cash. What’s going on?
In 2010, 28% of Southern Californians paid cash for home purchases, as opposed to about 13% nationwide. This is due to a few reasons: investors buying foreclosures on the courthouse steps – where you actually need cash to complete the purchase; other people think real estate will soon out-perform other investments and they are willing to park cash in real estate; and the fact that many homes are still expensive and even Jumbo loan limits are not high enough to cover these purchases.
Check out this LA Times article. It’s an interesting read. Post any comments you have or let me know if you have any questions.
http://www.latimes.com/business/la-fi-cash-only-20110301,0,5886560.story?page=1
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Kevin P. Cummins, J.D., SFR / Diane C. Cummins
Certified Relocation Specialist
Broker Sales Associate | REALTOR®
Coldwell Banker Residential Brokerage
3810 Valley Centre Drive #906
San Diego, CA 92130
C: 858-750-9577
F: 858-793-9944
CA DRE Lic. # 01812762
web: http://KevinCumminsHomes.com
mail: kevinpcummins(at)gmail(dotted)com
blog: http://CarmelValleySDRealEstate.wordpress.com