In some circles, carrying around large sums of cash is considered suspect behavior and warrants suspicion. But for would-be homeowners in Los Angeles County, lugged around a suitcase full of Benji’s is just another step in trying to close on a home.
This isn’t actually quite true – homeowners aren’t bringing physical piles of cash to a house closing – but they absolutely are writing checks on the spot, paying for the entire house with one go of the pen. Traditionally, many people seek a mortgage when buying their house – they’ll make a down payment, borrow the rest from the bank and pay it back with interest.
Mortgages are like, so 2008 You Guys
Why is the mortgage losing out these days? Because mortgages can take weeks or months to get set up. Demand is so high for housing at the moment, sellers want the money pronto, and many people are willing to pony up on the spot. In 2007, only 7 percent of homes in L.A. were sold via a cash transaction. Through the first quarter of 2013, almost a third of all home sales in L.A. are being done strictly using cash. Other areas of the country aren’t immune to this phenomenon either – Miami is another particularly prominent example of the rise in cash transactions.