Sound Off
Appearing in the San Francisco Chronicle Real Estate Section
From time to time, the editors of the Real Estate section at the San Francisco Chronicle will ask leading area real estate agents their opinion and thoughts about various topics related to the Bay Area’s housing market. This is right up our alley given our track record, experience helping buyers and sellers in various parts of the Bay Area and given the fact that Kevin used to be a reporter and lawyer, so you know there‘s an opinion just waiting to get out.
This Week‘s Question:
Are all-cash offers still common?
Answer:
While all-cash offers have historically received significant attention in San Francisco’s housing market, they only represent 15 to 20% of closed sales, MLS data reveals. The majority of homebuyers in the city, roughly 55% of closed sales, use mortgages to finance their purchases. These figures have remained steady and unchanged since at least 2019.
Nonetheless, cash still plays an important role here. This spring we’ve seen more buyers making larger cash down payments, from the typical 20 to 25% to 40 or 50% percent in cash. This shift reflects a broader trend of homebuyers being more strategic and calculated. To succeed in this market, all-cash offers must be both quick and hassle-free, with a seven-to 10-day close. Because mortgage lenders are still able to close a financed offer in 17 to 21 days, all-cash offers should be very fast and contingency-free. On the other hand, buyers who put down more cash not only preserve more of their cash, but also have the flexibility to borrow just a little more to win a property.
This appeared in the Sunday, May 7, 2023 edition of the San Francisco Chronicle and on SFGate.
MORTGAGES VS. ALL-CASH IN SAN FRANCISCO

For More Sound-Off Snippets...
While acute market forces are curtailing new construction starts now, development here was already an uphill battle. Development timelines take years, so any non-NIMBY-related delays in adding new homes will keep housing prices high that much longer. But even for people who can afford to buy in the Bay Area, there’s a shortage of accessible destination homes for folks who are downsizing or ones who can no longer do the stairs in their 3-story Victorian.
Conflicting news reports about the real estate ‘market’ are concerning because they gloss over the fact that the housing market is very nuanced as each property is unique. Folks can lose sight that buying a home not only serves the very basic purpose of shelter but is also the main way folks can build wealth.