Walnut Creek Tops Atherton for All-Cash Home Deals

Walnut Creek has surpassed Atherton in the percentage of all-cash home sales, a shift that reflects changing trends in the Bay Area real estate market. According to data from Redfin, 66.9% of home purchases in Walnut Creek's 94595 ZIP code were all-cash transactions between January and November 2024, compared to 65.7% in Atherton’s prestigious 94027 ZIP code. In 2019, the all-cash sales figures were 50.6% for Walnut Creek and 59.3% for Atherton.

This trend is influenced by several key factors. Elevated mortgage rates have made borrowing more expensive, driving buyers with sufficient resources to opt for cash deals to avoid high interest payments. Additionally, a growing challenge in obtaining home insurance in wildfire-prone areas of California has pushed some buyers toward all-cash purchases to simplify the process, according to reporting from the San Francisco Chronicle. An important component of this trend involves real estate investors engaged in home flipping. Walnut Creek and other East Bay markets have become increasingly popular for flippers who acquire properties with cash, renovate them, and resell quickly to capitalize on the demand for move-in-ready homes. These buyers often use cash to streamline their acquisitions, reducing competition and allowing them to close deals faster.

Walnut Creek’s 94595 area encompasses Rossmoor, a retirement community known for attracting buyers who often fund purchases with proceeds from selling higher-value properties elsewhere. This has contributed to the rise in all-cash deals in the region.

Historically, the Bay Area has trailed the national average in all-cash home purchases. Redfin reports that as of June 2024, only 28% of home sales in San Francisco and San Mateo counties were completed without financing, largely due to the region's prohibitively high property prices.

The rise in all-cash transactions highlights how buyers are adjusting to economic conditions shaped by interest rate increases and insurance hurdles.

Sources:

• The Real Deal article

• Redfin Housing Market Data

• San Francisco Chronicle