On broker tour yesterday I visited a beautiful home newly listed by a friend of mine on El Gato in Los Gatos. Although a modest 2 bedroom home, the owner had spared no expense in remodeling (right down to the $4000 kitchen sink!). This home and it’s 1 bedroom rental unit in back are the epitome of move-in readiness. I asked him how traffic had been and had he seen any interest yet. He proudly showed me the avalanche of realtor cards he had gathered that morning alone, only 1 hour into tour. He then told me he was already talking with a buyer about a potential all-cash offer. That’s not all, his previous listing (a Willow Glen home in the $1 million+ range) had also sold to an all-cash buyer.
One of my own recent transactions was also all-cash, though a more modest Campbell town home. We’re not alone, this is the story I’m hearing up and down the peninsula, with multiple offers and large cash injections being far from unusual.
This morning I found an article from Bloomberg in my intray reporting on exactly this trend in Silicon Valley and attributing it to the recent boom of IPOs creating cash rich buyers. What’s more one analyst reports this is only the beginning for us.
Take a read and let me know what you think.