I saw the graph below in a California Association of Realtors Market Data report, “More Investors Purchasing California Real Estate”. It made me wonder how many cash buyers were still purchasing properties here in the Napa Valley and if there was any way to determine if I could tell how many where investors?
I couldn’t find a simple way to do so but did break out the cash buyers. In the last 60 days, there were 59 cash sales out of 270 closed residential properties. The one easy statistic I could look at was the prices for the cash sales. Of these 59 were cash with 18 in the $0 to 400,000; 32 in the $400,000 to 1 million; and 9 $ 1 million up. The easy but unsubstantiated conclusion, those $400,000 and less are all investors.
This figures out to be 21.9 % cash sales and is way down from the peak of 35 % in 2011 and 2012 for Napa County residential sales. However, it is still above the norm which historically has been near 15 %. This percentage is a bit distorted on the high side due to the fact more than 60 % of the upper end sales, greater than 2 million, are cash.
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