All Cash Home Sales in San Francisco
In most of the country, the first group, investors, dominate all-cash purchases, even though their percentage of sales is now falling with the market recovery and general decline in the number of distressed property sales everywhere. In San Francisco, with its affluent (and sometimes super-affluent) buyer profile and its ferociously competitive market, all-cash purchases are dominated by the second and third categories. Some of these purchases run in the many millions or even tens of millions of dollars. And since San Francisco never suffered from the distressed property crisis as much as other areas, investor purchases of such homes never made up the large percentages of sales seen elsewhere (though we do have a fair number of contractors looking for fixer-upper and tear-down-and-build-new opportunities). Now distressed home sales are on the verge of disappearing altogether in the city: The percentage of distressed home sales in San Francisco peaked at about 20% a couple years back and is now down to a negligible 4% (generally clustered in the least affluent neighborhoods). However, in many other areas of the Bay Area, state and nation, the percentage peaked at over 50% or 60% of sales and has now declined to a much reduced but still considerable 20% - 30% of sales.
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