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EIGHT PERCENT OF CALIFORNIA HOME BUYERS PAY CASH FOR THEIR HOMES

EIGHT PERCENT OF CALIFORNIA HOME BUYERS PAY CASH FOR THEIR HOMES
 LA JOLLA, Calif., Aug. 27 /PRNewswire/ -- While most home buyers stretch their finances to the limit to qualify for a mortgage, a declining portion of California's new home owners pay cash for their new residence.
 Of the 86,040 residential purchases in California during May, June and July, a total of 6,989 or 8.1 percent were made with no financing (see chart), according to La Jolla-based Dataquick Information Systems.
 "It's a unique part of the market. Most of these buyers are people who are retiring, or whose children have left home. These so- called 'empty-nesters' want something smaller and more manageable to live in," said Donald Cohn, Dataquick president.
 "They sell the larger home, which is often paid off, and buy something smaller. They can often retire on the equity there was in the house," Cohn said.
 Dataquick monitors all real estate transactions statewide and provides real estate information to lending institutions, title companies and industry analysts.
 Another group that accounts for a large portion of the cash buys is the wealthy. A lot of the most expensive homes in California, as well as second homes, are paid for with cash, Dataquick reported.
 During the same three-month period last year 9 percent of all homes were paid for with cash. Two years ago the percentage was over 10.
 "With home prices currently flat or on the decline, we figure that a lot of potential sellers are waiting the market slowdown out," Cohn said.
 San Luis Obispo remains the county with the highest portion of cash sales while Santa Clara County has the lowest.
 CASH SALES AS PERCENT OF HOME-BUYING MARKET
 County May-July 1991 May-July 1992
 Los Angeles 5.3 pct. 5.2 pct.
 Orange County 5.5 pct. 4.6 pct.
 San Diego 13.9 pct. 9.2 pct.
 Riverside 17.5 pct. 13.3 pct.
 San Bernardino 13.1 pct. 13.4 pct.
 Ventura 5.9 pct. 4.9 pct.
 So.Calif. Total 9.2 pct. 8.0 pct.
 San Francisco 7.9 pct. 9.1 pct.
 Alameda 9.9 pct. 9.2 pct.
 Contra Costa 5.4 pct. 5.6 pct.
 Santa Clara 3.4 pct. 4.3 pct.
 San Mateo 5.8 pct. 7.0 pct.
 Marin 7.7 pct. 8.2 pct.
 Solano 8.4 pct. 6.3 pct.
 Sonoma 13.2 pct. 10.1 pct.
 Napa 11.0 pct. 13.0 pct.
 Bay Area Total 7.3 pct. 7.1 pct.
 Santa Cruz 13.6 pct. 9.0 pct.
 Santa Barbara 12.2 pct. 10.5 pct.
 San Luis Obispo 19.8 pct. 18.6 pct.
 Monterey 13.8 pct. 8.5 pct.
 Coast Total 15.0 pct. 12.1 pct.
 Sacramento 7.3 pct. 6.4 pct.
 San Joaquin 5.6 pct. 7.3 pct.
 Placer 11.8 pct. 11.7 pct.
 Kern 13.6 pct. 12.4 pct.
 Fresno 12.2 pct. 11.4 pct.
 Madera 12.1 pct. 16.7 pct.
 Merced 9.3 pct. 7.5 pct.
 Tulare 10.0 pct. 8.1 pct.
 Yolo 7.5 pct. 11.4 pct.
 El Dorado 7.6 pct. 6.0 pct.
 Stanislaus 8.2 pct. 7.0 pct.
 Inland Total 9.6 pct. 8.7 pct.
 All California(a) 9.0 pct. 8.1 pct.
 (a) Includes additional counties.
 -0- 8/27/92
 /CONTACT: John Karevoll, 714-867-7656/ CO: Dataquick Information Systems ST: California IN: FIN SU:


JL -- LA020 -- 3987 08/27/92 13:52 EDT
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Date:Aug 27, 1992
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