The amount of all-cash buyers grew across Los Angeles during the second quarter, but still lagged post-recession levels.
A new report from Attom Data Solutions, a real estate data firm, shows that all-cash deals accounted for 23.5 percent of all homes sold during April to June, Curbed reported. That’s up from 21.1 percent at the same time last year.
Though all-cash buyers are growing, they’re still not as common as they were in early 2013, when more than a quarter of all deals were handled in cash. Bargain deals and a flurry of foreclosures largely contributed to that. In the wake of the housing crash, banks also tightened up on lending.
When a buyer makes an offer in cash, it has the potential to inflate the market, Oscar Wei, a senior economist at California Association of Realtors, told Curbed. Buyers with the potential to purchase in all cash will typically outbid other potential buyers who require a loan, thus hiking up the value of a home.
Loans have also gotten more expensive as mortgage interest rates rise. That’s helped cash buyers, who don’t have to deal with the hassles of taking out a mortgage.
Last quarter also saw an increase in the median down payment, as well as co-buyers.
The median down payment on single-family homes and condos purchased with financing increased 19 percent to $19,900, according to the report.
Nationwide, co-buyers accounted for 17.6 percent of all sales last quarter. San Jose and San Francisco had the highest share of co-buyers, with nearly 50 and 40 percent of homes, respectively, sold to multiple, non-married buyers. [Curbed] — Natalie Hoberman