All Cash Deals Still Rule in Some Housing Markets

Source: Money-CNN
Silicon Valley Buyers Drive Record Sales of High-End Homes in Santa Cruz
Buying a home? You still have to compete against the big money bringing all-cash. But it’s getting a little easier.

All-cash deals made up 38% of all home sales in the second quarter, according to RealtyTrac, down from 42% in the prior quarter.

One reason is that big institutional buyers, those buying at least 10 homes a year, are finding fewer deals.

“It was an option that my insurance agent tried to talk me into. But I’m from Minnesota, and I haven’t had to deal with anything like this before.” They accounted for 4.7% of all homes sold, down from a peak of 6% in 2013.

As the housing market recovered, these investors were buying up homes in deeply troubled markets, like Phoenix and Las Vegas. Those bulk buys helped to reverse the slide in home prices.

Read the full story at Money.Cnn.com

Napa Quake Brings Up Topic of Earthquake Insurance

Source: Sacramento Bee
Napa Quake Brinks up Topic of Earthquake Insurance
The earthquake that jolted the Napa Valley last weekend upended more than wine barrels and mobile homes. It also was an unsettling reminder of how few Californians – homeowners and businesses alike – carry earthquake insurance.

In large part because of cost, complacency and the “it’ll-never-happen-to me” syndrome, Californians are more likely to own a swimming pool than an earthquake policy.

“We do not have earthquake insurance,” said Robert Dahl, owner of Dahl Vineyards in Napa, who figures he is down about $30,000 in damaged assets and lost revenue from temporarily closing his winery in the quake’s aftermath.

“It was an option that my insurance agent tried to talk me into. But I’m from Minnesota, and I haven’t had to deal with anything like this before.”

Read the full story at SacBee.com

Silicon Valley Buyers Driving Record Home Prices in Santa Cruz

Source: San Jose Mercury News
Silicon Valley Buyers Drive Record Sales of High-End Homes in Santa Cruz
All of a sudden, high-end homes are in demand, and many of the buyers are coming from Silicon Valley.

“The upper end is going crazy,” said Stephen Pereira of Bailey Properties, an agent since 1982. “More tech people are coming over … they know what they’re looking for.”

In July, 42 of the 197 sales were for more than $1 million, 21 percent, after 28 in June and 33 in May, according to Gary Gangnes of Real Options Realty who tracks the numbers.

The spike pushed the median price, the midpoint of what sold, to $725,000, the highest since December 2007, according to Gangnes.

Read the full story at MercuryNews.com