Saturday, October 17, 2015

Where are all the cash buyers?

With all the talk about how cash buyers are king/queen in the San Francisco real estate market and how ordinary buyers who need a mortgage are being beat out at every turn it's a little surprising to see this report from Zillow that shows San Francisco is one of the lowest markets in terms of percentage of cash buyers.

Of the 47 metropolitan areas listed, San Francisco is 39th (and San Jose is 42nd).  The highest percentage of cash buyers appears concentrated in Florida.  The top four area are Miami-Ft. Lauderdale, Sarasota, Ft. Myers and Tampa -- all with more than 50% cash buyers.

The explanation may be as simple as homes in the Bay area are generally more expensive than in many eastern cities.  According to Zillow's numbers, the "median home value in Miami is $289,200" compared to San Francisco's median home value of $1,094,500.

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