In Walnut Creek, cash is king.
Homebuyers in the East Bay city have trumped Atherton, home of one of the wealthiest zip codes in the nation, for the most all-cash home purchases, the San Francisco Chronicle reported, citing figures from Redfin.
Buyers in the 94595 zip code in Walnut Creek plunked down cash for 66.9 percent of homes bought between January and November 2024, up from 50.6 percent in the same months of 2019.
In Atherton’s 94027, 65.7 percent paid in green, an increase from 59.3 percent five years earlier. It was followed by Palo Alto, where buyers forked over 51.8 percent in cash, up from 2019’s 45.3 percent. Redfin’s data includes San Francisco, San Mateo, Alameda, Contra Costa and Santa Clara counties.
Apart from fat bank accounts, the reasons for the increased cash purchases: avoiding mortgage payments jacked up by higher interest rates and the challenges of obtaining home insurance, according to the Chronicle.
Walnut Creek’s 94595 includes upscale Rossmoor, home of retirees who sold more expensive homes elsewhere before moving there, allowing them to buy new homes in cash.
But part of the rise in cash sales may be because California’s insurance crisis has made it harder for buyers to secure a mortgage, according to the newspaper. That makes cash buys a straightforward option — for the few that can afford it.
Cash purchases across most of the Bay Area have for years lagged behind the nation. Just 28 percent of home sales made in San Francisco and San Mateo counties were made in cash, according to a June Redfin report.
That’s partly because high home prices across the region mean only the very wealthy can cover the entire cost of a house.
But it’s also because investors with cash looking to “flip” a home have a better chance of making a profit by buying lower-priced homes in other regions, which draw a more competitive pool of buyers, according to Redfin.
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