Where is the cash in the Sacramento market?

We’ve all heard about cash in the Sacramento real estate market, but where is it exactly? Let’s take a look below to see what price segments are being targeted the most by cash buyers so far in 2013.

cash purchases in Sacramento County in 2013 - by Sacramento Appraisal Blog

It’s amazing to see that 38.23% of all single family sales in Sacramento County in 2013 have been cash purchases. As you can see, the bulk of these sales are between $50,000 to $200,000. In fact, roughly two-thirds of all cash sales in Sacramento County are in this price range. There is also a good amount of cash between $200,000 to $250,000 also. Above that level (especially above $300,000), the numbers really begin to decline. Yes, Blackstone is still purchasing, but keep in mind there are many other investors playing the market too. By the way, Blackstone is also now buying as “IH2 Property West LP” (“IH” stands for Invitation Homes) along with “THR California LLC” and “THR California LP”.

cash purchases pie graph in Sacramento County in 2013 - by Sacramento Appraisal Blog

Applying the Numbers: Data is always interesting, but it becomes really useful when we begin to apply it to business. In this case, if you are an investor, it may be worth considering flipping above $250,000. If you are a Buyer’s Agent, it’s probably a good time to find buyers at higher price levels to avoid the blood-bath under $200,000 since nearly 70% of Sacramento County’s cash purchases have been under $200,000. What other implications do you see?

Finding Inventory: Speaking of money, I figured this might be worth mentioning in light of so much cash and so little inventory in this market. I sit on the Housing Opportunity Committee through the Sacramento Association of Realtors, and we are putting on an event next week called “Show Me The Money”. This event is open to everyone and designed to give tools to real estate agents to create inventory in this current market as well as excel at door-knocking and attracting sellers at an open house. Watch the one-minute video I made below for details (or here).

Any insight or stories to share?

UPDATE: Welcome to any Sacramento Business Journal readers who are visiting from today’s “Want a house? That’ll be cash, please“. I appreciate you being here. It’s always an honor to be featured in a BizJournal article. If you are looking for real estate trends, let’s connect. You are welcome to subscribe to my posts too.

If you have any questions or Sacramento home appraisal or property tax appeal needs, let’s connect by phone 916-595-3735, email, Twitter, subscribe to posts by email (or RSS) or “like” my page on Facebook


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