SAN FRANCISCO (KRON) — The share of homes being bought in all-cash deals has hit its highest level in eight years, according to a new report from Redfin. However, while all-cash deals are on the rise across the country, the Bay Area tops the list of places with the lowest share of such deals.
About a third of U.S. home purchases — roughly 31.9% — were paid for in cash in October, according to Redfin. That’s up from 29.9% a year ago and the highest it’s been since 2014. But while Florida saw the most all-cash purchases in October, Bay Area housing markets saw the least.
In Jacksonville, about half — 49.7% — of homes sold in October were bought in cash. Close behind was West Palm Beach at 48.6% and two Ohio metros — Cleveland (47%) and Cincinnati (43.9%).
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At the other end of the spectrum were expensive Bay Area cities where the share of all-cash purchases was much lower. In San Jose, just 14.3% of homes were purchased with cash in October. In Oakland, it was just 16.5%, Redfin said. Seattle at 19% and Los Angeles at 19.2% were close behind.
As Redfin pointed out, the typical home sells for well over $1 million in San Jose and in the high six figures in Oakland, making it “challenging to use cash to fund a home purchase.”