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Michael Krotchie's Blog

By Michael Krotchie | Agent in Tucson, AZ

Tucson Cash Buyers Still King

What’s the Deal?

Cash buyers have come out of the woodwork in Tucson and are snapping up properties left and right. Take a look at the trends over the last five years:

Total Properties SoldCash DealsPercentage of Market
2010 (YTD)8,0022,21727.71%


And just an FYI, to keep things simple I only included Single Family Residences (SFRs) in these statistics but I”m sure if I included everything else (condos/townhomes/rental properties/land) the trend would be similar; cash buyers are just making moves left and right.

Where Is This Happening?

This trend is not just in Tucson but is occurring all over the US:

Las Vegas:

Buyers who appear to have used cash to purchase their homes accounted for 46.7 percent of all May sales, down from 48.0 percent in April but up from 42.0 percent a year earlier, based on an analysis of public property records. The median price paid in these seemingly all-cash deals in May was $105,000, down from $112,000 in April but up from $89,250 a year ago.


All-cash deals have become popular in many Western markets where prices have dropped sharply, luring investor buyers who can’t always qualify for traditional mortgages. Moreover, sellers favor the relative speed and certainty of all-cash transactions.

Los Angeles:

Buyers who appeared to have paid all cash – meaning there was no indication that a corresponding purchase loan was recorded – accounted for 27.1 percent of March sales. In February it was a revised 30.0 percent – an all-time high. The 22-year monthly average for Southland homes purchased with cash is 13.8 percent.


With financing still difficult to obtain, all-cash buyers and deep discounts on distressed properties are propping up sales, said Peter Zalewski, a principal at Bal-Harbour-based Condo Vultures.

About 60 percent of South Florida sales have gone to foreign buyers, who are more likely to pay with cash and were never eligible for the tax credit.

So What Does This Mean?

Cash buyers coming out of the woodwork can only be a good sign. It shows people are finally seeing opportunity for investment/growth/return and are willing (and able) to put their cash back into the market.

Any market recovery will start with investors trying to make their money and while the rest of the economy may be sluggish the real estate market will be the first to turn around.


By George Szkup,  Sat Aug 14 2010, 16:49
Percentage of cash buyers increased because non- cash buyers have difficulties to get loans. Once the market will return to more-normal, percentage of cash buyers will decrees. Also, most of cash buyers now are either investors or buyers of luxury properties. If you eliminate this two groups from the "equation" than you would get true comparison.
George in Tucson
Homes for sale – many! http://www.LuxuryTucsonRealEstate.net
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By Michael Krotchie,  Sat Aug 14 2010, 17:03
Hi George,

As I addressed investors in the article I thought that point was clear, I wasn't looking to show a partial statistic but a whole market view, hence the numbers.

Either way more cash in the market is definitely a good sign, if people were nervous about the economy or housing market they wouldn't be opening up their purse-strings.

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