If you've spent any time watching real estate headlines lately, you've probably heard people say,

"Everyone is paying cash."

The truth?

Not even close.

I recently analyzed every residential sale across the South Bay during the first half of 2026, and the numbers tell a much more interesting story.

If you're buying or selling in Manhattan Beach, Hermosa Beach, Palos Verdes, Rolling Hills, Redondo Beach, Torrance, Lomita, San Pedro or El Segundo, understanding how buyers are financing purchases can give you a major advantage.

South Bay Single-Family Homes

During the first six months of 2026:

• 1,144 homes sold

• Only 25% were purchased with cash

• 75% used financing

• Average down payment: 27.2%

• Average loan amount: $1,489,627

That completely changes the narrative.

While cash buyers are certainly active, the vast majority of buyers still depend on financing.

Luxury Markets Tell a Different Story

The percentage of cash buyers changes dramatically depending on location.

Rolling Hills

Rolling Hills had one of the highest percentages of cash buyers in the South Bay.

• 62.5% paid cash

• Average financed loan:
  $3.7 million

This reflects the ultra-luxury nature of the market where many buyers are purchasing after selling other significant assets or have substantial liquidity.

Palos Verdes Estates

Nearly 40% of buyers paid cash.

Even financed buyers averaged more than $2.4 million in mortgage financing.

Manhattan Beach

Manhattan Beach continues to attract affluent buyers.

• 34.4% cash purchases

• Average down payment:
  $1.36 million

• Average financed loan:
  Nearly $2.9 million

Rancho Palos Verdes Shows a Different Story

One statistic that surprised me was Rancho Palos Verdes.

Although home prices remain strong:

• Only 18.8% of purchases were cash.

• Over 81% of buyers used financing.

This reinforces that financing remains an important part of today's housing market—even at higher price points.

What About Condos and Townhomes?

Condominium buyers actually used cash slightly more often.

Across the South Bay:

• 416 condo sales

• 29.1% purchased with cash

• Average down payment:
  28.4%

• Average loan:
  $742,875

Manhattan Beach Condos

One of the biggest surprises:

• 42.1% cash purchases

That's nearly half of all condo buyers.

Redondo Beach Condos

Depending on the ZIP code:

• 25.9%

• 37.5%

of purchases were cash.

Why This Matters If You're Selling

Knowing how buyers are purchasing affects your entire marketing strategy.

For example:

If you're selling in Rolling Hills, your marketing should appeal to high-net-worth buyers who may have significant cash available.

If you're selling in Rancho Palos Verdes or Torrance, your buyer pool is much more likely to require financing, meaning interest rates, loan approvals, and lender relationships become even more important.

Understanding these differences allows sellers to price more effectively, negotiate intelligently, and structure offers that are more likely to close.

Why This Matters If You're Buying

Many buyers assume they can't compete against cash.

The data suggests otherwise.

Three out of every four single-family home purchases in the South Bay were financed during the first half of 2026.

A well-structured financed offer—with strong underwriting, substantial down payment, and favorable terms—can absolutely compete.

My Perspective After More Than 1,000 South Bay Sales

After selling real estate in the South Bay for more than three decades, I've learned that every neighborhood has its own personality.

Some markets attract executives relocating from technology companies.

Others attract retirees.

Some neighborhoods see investment buyers.

Others are dominated by growing families.

Looking only at countywide statistics misses these important local differences.

That's why I spend so much time analyzing neighborhood-level data. It helps my clients make smarter decisions based on what's actually happening where they live—not just what national headlines say.

Key Takeaways

• Only 25% of South Bay single-family homes sold for cash in the first half of 2026.

• 75% of buyers used financing.

• Rolling Hills had the highest percentage of cash buyers at 62.5%.

• Manhattan Beach remained one of the strongest luxury cash markets.

• Rancho Palos Verdes relied heavily on financed purchases.

• Condo buyers purchased with cash slightly more often than single-family home buyers.

• Financing continues to drive the South Bay housing market.

Frequently Asked Questions

Is cash still king in South Bay real estate?

Cash offers remain attractive, especially in luxury markets, but the majority of South Bay home purchases are still financed. Only 25% of single-family homes sold for cash during the first half of 2026.

Which South Bay city had the most cash buyers?

Among the cities in this report, Rolling Hills had the highest percentage of cash purchases for single-family homes at 62.5%.

Can a financed offer compete with a cash offer?

Yes. A well-qualified buyer with strong underwriting, a substantial down payment, and favorable terms can often compete successfully, particularly in markets where financing is the norm.

Why should sellers care about cash versus financed buyers?

Understanding how buyers typically purchase homes in your neighborhood helps shape pricing, negotiation strategies, and marketing, leading to stronger offers and smoother transactions.