Number of Cash Sales in California Jumps 14%

The number of homes purchased in California without recorded financing jumped 14% in the first eight months of 1989, compared with the same period last year. In the seven Southland counties, the booming Inland Empire experienced a tremendous increase in cash sales, while the more expensive coastal areas saw declines--32% in the case of Orange County. Price appears to be the key factor, according to a survey by TRW Real Estate Information Services. The more expensive a home is, the less likely it is to be bought without financing. All-cash homebuyers generally fall into two groups: the wealthy and “empty-nesters” who are cashing in on the equity built up in their homes.

PRICES OF HOMES BOUGHT FOR CASH Percent of all homes purchased in California between Jan. and Aug. 1989: More than $300,000: 5% $201,000-$300,000: 7% $100,000-$200,000: 11% Less than $100,000: 14% CASH SALES OF HOMES IN 1989 Percent of all home sales, Jan.-Aug. 1989: Ventura: 7% Los Angeles: 6% San Bernardino: 7% Orange: 6% Riverside: 11% San Diego: 8% Imperial: 9% CASH SALES OF HOMES, BY COUNTY Number of sales for the first eight months of 1988 and 1989, and percentage change:

County 1988 1989 % change Ventura 880 703 -20.1 Los Angeles 6,536 6,060 -7.3 San Bernardino 1,626 1,975 +21.5 Orange 2,447 1,663 -32.0 Riverside 2,335 3,455 +46.7 San Diego 2,988 2,718 -9.0 Imperial N/A