In response to a former blog post about the number of cash sales of Big Bear homes that I posted last week, a reader inquired as to whether or not lakefront properties are more often purchased with cash than non-lakefronts. Of course, I ran the numbers...
As you can see, with the exception of 2006 and this year, if you look back over the past decade, lakefronts in Big Bear have been purchased with cash noticeably more often than homes not on the lake. This peaks in the crisis year of 2009, right after the financial market collapse, where you see 60% of lakefront sales being a cash purchase!
Of course, lakefront homes are in a higher price range which typically attract a clientele that is more capable of cash purchases than a home closer to Big Bear's median price. Cash purchases often enable smoother transactions and a buyer's edge that many who are capable of doing so take advantage of.
Interestingly, so far this year there has yet to be a cash sale on the lake. I am sure that will change through our busy home buying season this summer!