SAN FRANCISCO (KCBS) — Real estate firms are reporting a record number of Bay Area homes are being bought with cash, making it increasingly difficult for first-time homebuyers to get their offers accepted.
Often, the bids are only accepted after multiple offers resulting from bidding wars, according to real estate experts.
Real estate agent Peyton Schteevah with Pacific Union in San Francisco said 26 percent of their transactions last year were all-cash deals. That is a reflection of the record statewide high in 2012, where 32.4 percent of overall home sales were cash purchases.
“People came to the table with cash deals because it was so competitive to get homes that they tried to get any advantage they could to get their foot in and have a very compelling offer,” he said.
Schteevah said plenty of people decided to cash in their stocks or use money they had saved in the bank to compete with investors, a situation that is squeezing out buyers obtaining mortgages.
“It is very, very frustrating,” he said.
Adding to the current environment is a low inventory of homes and a median Bay Area price of $426,500 in February, up 22 percent from the same time last year.
“It is a seasonal market. Right now it’s extremely hot, but if we learned anything from the past; it’s up and down,” he said.
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