Last month, cash purchases made up 20 percent of all real estate transactions
As sales prices for Los Angeles homes continue their solid recovery from the recession, the profile of all-cash homebuyers has changed.
In the wake of the recession, foreign and domestic investors made up a good chunk of cash-only buyers in LA. All-cash sales are still happening fairly frequently—last month, 20 percent of all real estate transactions in Southern California were all-cash, Geoff McIntosh, president of the California Association of Realtors, tells KPCC—but the days of investors snapping up homes passed four or five years ago, says McIntosh.
Who are these buyers making all-cash home purchases? KPCC reports that one dominant group is the children of wealthy parents. "They're going to mom and dad and saying, 'We really want to buy something and would love it if you give us the money,'" McIntosh tells the radio news station.
Another is tech industry employees, Richard Green, director of the USC Lusk Center for Real Estate, tells KPCC. He says these workers are often paid well and are offered stock options that they can sell when the company goes public, leaving them with money to put toward a house.
For the full story, head over to KPCC.