One of the most important questions sellers ask me today is simple but powerful:
“Who is actually buying homes right now?”

The answer matters more than ever. In a market shaped by higher interest rates, tighter underwriting, and cautious buyers, understanding whether purchasers are using cash or loans can dramatically change how a home should be priced, prepared, and negotiated.

New South Bay sales data from the second half of 2025 provides clear insight into buyer behavior across coastal and Peninsula communities. It reveals not only how prevalent cash buyers are, but how differently they behave depending on price point, location, and property type.

For homeowners in Palos Verdes Estates, Rolling Hills, Rolling Hills Estates, and Rancho Palos Verdes, this information is especially important. These are sophisticated markets where buyer profiles are not uniform and where strategy makes the difference between a smooth sale and a frustrating one.

This article breaks down what the data shows, what it means for Palos Verdes sellers and buyers, and how to use it to your advantage.

The Big Picture: Cash Is a Meaningful Part of the Market

Across the South Bay in the second half of 2025, 26.7 percent of single-family home purchases were made with cash. For condos and townhomes, that number increased to 31.8 percent. 

Cash Vs Loan

That means roughly one out of every three buyers in certain segments did not rely on traditional financing.

This matters because cash buyers behave differently:

• They move faster

• They are less sensitive to interest rate changes

• They often waive or shorten contingencies

• They prioritize value and condition over monthly payment math

In higher-end markets like Palos Verdes, the presence or absence of cash buyers can determine whether a home receives multiple offers or sits longer than expected.

Why Cash Buyers Matter More in High-Value Coastal Markets

In entry-level markets, most buyers rely on financing. In luxury and semi-luxury markets, cash becomes far more influential.

Cash buyers are often:

• Move-down buyers selling a larger home

• Relocating executives

• Investors seeking long-term holds

• Families leveraging equity from prior properties

• International buyers diversifying assets

In Palos Verdes, cash buyers frequently target homes that are well located, well presented, and priced correctly. They are not bargain hunters in the traditional sense, but they are disciplined.

Understanding how prevalent these buyers are by city gives sellers clarity about leverage and pricing power.

Palos Verdes Estates: Nearly Half of Single-Family Buyers Paid Cash

In Palos Verdes Estates, the data is striking.

• 47.1 percent of single-family home sales were cash purchases

• Average down payment on financed deals was approximately 34.9 percent

• Average loan amount exceeded $2 million

This confirms what many sellers intuitively feel: Palos Verdes Estates attracts financially strong buyers who often have multiple purchasing options.

What this means for sellers:

• Clean, well-prepared homes are extremely competitive

• Pricing must reflect condition and location precision

• Cash buyers will pay for quality but resist overpricing

• Negotiation leverage often favors sellers who are realistic, not aspirational

For buyers, it means competition can be intense, especially for turnkey homes near the coastline or walkable village areas.

Rolling Hills: Fewer Cash Buyers, Larger Down Payments

Rolling Hills tells a different story.

• 31.3 percent of single-family sales were cash

• Average down payment on loan purchases exceeded 40 percent

• Average loan amounts were over $2.1 million 

While the percentage of cash buyers is lower than in Palos Verdes Estates, financed buyers in Rolling Hills are still exceptionally strong.

This reflects the nature of the gated city:

• Large estate properties

• High net-worth buyers

• Long-term ownership patterns

In Rolling Hills, even loan buyers behave more like cash buyers from a negotiation standpoint. They are often highly qualified and selective.

For sellers, this means pricing accuracy and property presentation are critical. Buyers here are not stretching financially. They are choosing carefully.

Rolling Hills Estates: A More Traditional Financing Profile

Rolling Hills Estates shows a more balanced mix:

• 17.4 percent of single-family sales were cash

• Average down payment around 37.2 percent

• Average loan amount approximately $1.77 million 

This city attracts a broader buyer pool, including families upgrading within the Peninsula and buyers relocating for schools and lifestyle.

Here, financing terms matter more, but buyers are still well capitalized.

For sellers, this means:

• Loan contingencies are more common

• Appraisals and condition matter

• Overpricing can slow momentum quickly

Homes that are staged, updated, and priced correctly still perform very well.

Rancho Palos Verdes: A Large Market with Multiple Buyer Profiles

Rancho Palos Verdes had the highest number of total sales in the data set, reflecting its size and diversity.

• 27.3 percent of single-family buyers paid cash

• Average down payment on loan deals about 33.2 percent

• Average loan amount around $1.3 million 

Rancho Palos Verdes is not one market. It includes:

• Coastal bluff properties

• Inland neighborhoods

• View and non-view homes

• Newer and original construction

Cash buyers tend to concentrate in specific segments, particularly view properties and homes requiring renovation where speed and certainty matter.

For sellers, understanding which buyer pool your home appeals to is essential. Strategy in Rancho Palos Verdes must be neighborhood specific.

Condos and Townhomes: Cash Buyers Are Even More Influential

Across the South Bay, condos and townhomes showed a higher percentage of cash purchases than single-family homes.

In Rolling Hills Estates condos, more than 52 percent of purchases were cash. Rancho Palos Verdes condos saw nearly 42 percent cash transactions.

Why?

• Downsizing buyers often sell a larger home and pay cash

• Investors favor condos for rental flexibility

• HOA rules and insurance considerations can limit loan options

For sellers of condos and townhomes, this reinforces the importance of:

• HOA health and documentation

• Clean disclosures

• Competitive pricing aligned with cash buyer expectations

What This Data Means for Sellers Right Now

1. Pricing Must Match the Buyer Pool

Cash buyers do not chase aspirational pricing. They analyze value relative to condition, location, and replacement cost.

Homes priced correctly from the start attract stronger offers, faster timelines, and fewer concessions.

2. Preparation Is Not Optional

Cash buyers expect quality. Deferred maintenance, outdated finishes, or poor presentation will reduce demand even in strong locations.

3. Negotiation Strategy Changes

Cash offers are not always the highest price, but they are often the strongest. Sellers must weigh certainty, timing, and terms alongside price.

What This Data Means for Buyers

For buyers, especially those using financing, this data highlights the importance of preparation.

• Strong down payments matter

• Clean contingencies matter

• Speed and clarity matter

In competitive segments, financed buyers can still win, but only with thoughtful strategy and strong representation.

Why This Matters Even If You Are Not Selling Today

Market data like this shapes future pricing. Cash buyers help establish price floors during uncertain periods. Their presence supports long-term value stability in markets like Palos Verdes.

For homeowners, understanding who the buyers are today helps you make better decisions about timing, improvements, and long-term planning.

The Bottom Line

The second half of 2025 made one thing clear:
Cash is not a niche player in the South Bay. It is a defining force.

In Palos Verdes Estates, Rolling Hills, Rolling Hills Estates, and Rancho Palos Verdes, buyer strength remains high, but expectations are elevated.

Homes that are priced correctly and prepared properly continue to perform well. Homes that miss the mark face resistance, even in desirable locations.

If you are considering selling, buying, or simply want to understand how your property fits into today’s market, a data-driven, neighborhood-specific strategy is essential.

Suzanne Dyer
Wall Street Journal/REALTRENDS #59 in California, #204 in the Nation
Luxury Real Estate Specialist
Los Angeles Business Journal Top 100 Realtors in Los Angeles
Top Woman Listing Agent in the South Bay & Palos Verdes 2023
Over 1 Billion Dollars in Career Sales
Top Realtor in Rolling Hills, Rolling Hills Estate, Rancho Palos Verdes, Palos Verdes Estates, and the South Bay
Strand Hill | Forbes Global Properties
CA BRE license #01054310
www.suzannedyer.com
310-528-7480 cell