Picking up where we left off last week. (Go to tombrezsny.wordpress.com to grab the thread.) The big question hanging, call it the $64,000 question or the $640,000 question, (or just keep adding zeros) : Where are all those all-cash offers coming from? The one’s the market has been experiencing at an unprecedented clip for the last two or three years?
Who has that kind of money? Didn’t everything implode in 2008? Wasn’t everyone hammered by the Great Recession? Where’s all the dough coming from?
Is it funny-money people were stashing under their mattresses or in shoe boxes? waiting to cash-in on just the right rainy day market? Are more people selling their comic book collections? Are a growing number of Doomsday Preppers digging up their backyard coffee cans full of gold kruggerands, sensing that now may be the perfect move-up market for a spacious Post-Apocalyptic bunker to hunker down in for the rest of the world’s dystopian future?
Or are all these cash Buyers someone else? Some new breed of Buyer that’s evolved out of the rubble of 2008? Homing instincts genetically altered by events radiating out from our bubble blast from the past? Driven by a different set of needs and desires? And strategies for getting what they want?
I tried asking a few mortgage brokers where all the cash is coming from. They watch money closely so I figured they might have a good feel for the question. But unfortunately, mortgage types don’t get the chance to interact with many all-cash buyers, since all-cash people aren’t in need of any loan services.
So I’ve turned to Realtors who are right there, stationed in the trenches and I’ve been going Agent-to-Agent, collecting as many different all-cash client origin stories as I can. Hoping to create some kind of over-arching composite profile that helps explain where all those mysterious cash buyers are coming from.
I could probably just say all-cash offers are coming from rich people and leave it at that. We love to say it’s the rich people these days. But here in Coastal California, in a County that resides right next door Silicon Valley and where the median price of a home borders on $700,000, I don’t think it’s that simple. I’m not sure I even know what a rich person is anymore and it’s not going to provide much helpful insight for anyone scratching their head, trying to figure it out.
Anyone that has a cash offer experience of their own is invited to e mail it to me. I welcome all thoughts or theories or tantalizing clues that anyone can come up with while we are trying to follow the money trail and track the cash.