If you've been following my blog and YouTube Videos at all this year then you know sacramento real estate is all about: low inventory, high buyer demand, multiple offers and prices getting bid up. The reason?? Cash buyers/investors. They are everywhere and the buyers that need a loan to purchase their home are having a very difficult time competing with the cash buyers. Here's a Sac Bee article about the subject:
Sacramento cash-only home sales hit 10-year high
Roughly 37 percent of Sacramento County homes bought last month were purchased with cash and no loan, the highest rate in at least a decade, according to new data from the Sacramento Association of Realtors.
The figures represent another indication that investor activity in the Sacramento real estate market has reached a fever pitch. Most, but not all, homes bought with cash go to investors who don't plan to live in them.
Hundreds of homes recently bought with cash were purchased by Blackstone, the international investment fund, as the Bee reported Sunday.
Investors have focused most of their attention on low- to mid-income neighborhoods where rents remain high but prices remain low.
They've cleared a glut of vacant, bank-owned homes from many neighborhoods and helped drive home values higher. They've also outbid scores of would-be homeowners who want to live where they buy, and played a role in the ongoing shift of tens of thousands of local residents from owner- to renter-occupied homes.
This chart shows the percentage of homes purchased with cash in Sacramento County and West Sacramento during October of each of the last 10 years.