Cash vs. Loan: How Buyers Purchased South Bay Homes in 2024

The South Bay real estate market has always been dynamic, and understanding how buyers are financing their purchases can provide valuable insight into current trends. In 2024, the breakdown of cash versus loan transactions varied significantly by area, reflecting diverse buyer preferences and financial strategies. Let’s take a closer look at the data and what it means for you as a buyer or seller.

Key Takeaways by Zip Code:

Manhattan Beach (90266)

• 33% of sales were cash transactions—one of the highest percentages in the South Bay.
• The average down payment for loan-based purchases was a substantial $1,428,612, reflecting the luxury market Manhattan Beach is known for.

Rolling Hills, Rolling Hills Estates, and Palos Verdes Estates (90274)

• 38% of sales were cash, the highest percentage in the region, signaling strong investment activity and high-net-worth buyers.
• The average down payment for financed transactions was $1,181,698, showcasing the premium nature of this area.

Redondo Beach (90277)

• 35% of sales were cash, with an average down payment of $794,900. This balance of cash and loan transactions highlights the area’s mix of high-end and mid-tier buyers.

Torrance (90503)

• 29% of sales were cash, with an average down payment of $448,627. Torrance remains a competitive market for families and professionals looking for a mix of affordability and quality.

What Does This Mean for Sellers?

If you’re considering selling your home in one of these areas, knowing how buyers are purchasing can help you better position your property. For example:

• In markets like Rolling Hills or Manhattan Beach, where cash buyers are prevalent, emphasizing features that appeal to high-net-worth individuals can make your listing more attractive.
• In areas like Torrance, a mix of cash and loan buyers means you’ll likely see a variety of offers. Work with a real estate professional to evaluate the strength of each offer beyond just the purchase price.

What Does This Mean for Buyers?

For buyers, understanding these trends can help you craft a competitive offer:

• In cash-heavy markets, coming in with an all-cash offer or a large down payment can give you an edge.
• In more balanced areas like Torrance or Redondo Beach, strong pre-approval and competitive terms can help your loan-based offer stand out.

Navigating the South Bay Market

The real estate landscape is constantly evolving, and staying informed about local trends is essential. Whether you’re buying or selling, working with a knowledgeable and experienced agent is key to navigating this competitive market.

If you have questions about the market or need expert guidance tailored to your situation, I’m here to help. Contact me or join my mailing list for more information. Together, we can make your real estate goals a reality!

Suzanne Dyer
CA DRE license #01054310