5 things to know about cash sales in Sacramento

Everyone has been saying cash investors are leaving the market in Sacramento. Yes, there has been noticeably less cash being spent lately. Here are five things to know about cash sales in Sacramento County.

  1. Half of cash sales in Sacramento County are under $200,000.
  2. Cash sales are down about 14% since Q1 2013 in the entire county.
  3. Cash sales under $200,000 have decreased by about 13% since Q1 2013.
  4. About 22% of all sales this quarter in the county have been cash purchases.
  5. Roughly 37% of all sales under $200K this quarter have been cash buyers.

cash sales under 200K in Sacramento County - by Sacramento Appraisal Blog

Right now cash sales are at a level close to when the market hit bottom in early 2012 for under $200,000 and even before for the entire county. Things have really begun to shift over the past two quarters, haven’t they?

cash investors in sacramento real estate - by Sacramento Appraisal Blog

This chart shows where cash is being spent in the Sacramento market. As you can see, the bulk of cash sales are under $200,000, but there is still a healthy dose of cash between 200-300K. These numbers of course only show the total percentage of cash sales, so it’s important to realize this doesn’t address how much competition there is in the market. For instance 73% of all sales under 100K have been cash purchases and 35% of all sales between 100-200K have been cash. This helps us see there is vastly more competition under 100K than above. Stats like this are important because they give insight into the appetite investors right now, and they can even help establish a plan for which price segments to focus on.

Questions: Any thoughts, insight or stories to share? I’d love to hear your take.

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