Some Still Pay Cash for Houses Despite High Costs in Southland : REAL ESTATE

Who pays cash for a house these days? Often they’re so-called “empty nesters,” older people whose children have grown and who are selling a bigger house to move into a smaller one.

Of the 37,500 homes sold in California in February, 2,900 were bought with cash, said TRW Real Estate Market Information in Colton. That’s about 8%.

“And of course there are some buyers who have a lot of money, who can take advantage of a good deal if it pops up,” said Robert Walker, a TRW analyst.

“They might refinance later.”

In Orange County--one of the most expensive housing markets in the country--only 6% of the 3,200 homes sold in February were bought with cash. The average price of a home that month was $224,057; the average price of a home bought with cash was $230,940.

The percentages varied widely across the state. In San Luis Obispo, where homes are much cheaper, nearly 20% were bought with cash. In San Francisco, another expensive housing market, it was only 3%.