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Cash-Only Real Estate Transactions and Property Prices in San Francisco, California

Author

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  • Abdala Rioja, Yamile E

Abstract

In recent years, there has been the common shared belief that international investors and other buyers of real estate in cash-only transactions have exercised an upward pressure in property prices in the city of San Francisco in California, the consequence being the crowding-out on buyers requiring access to credit. This paper examines real estate prices and cash sales for the period beginning after the last recession to the year 2015, as well as other significant drivers since the year 1998. The results suggest a contradiction to the cash-only claim, at the same time that they reveal a strong relationship between the technology sector and the real estate prices in the city.

Suggested Citation

  • Abdala Rioja, Yamile E, 2016. "Cash-Only Real Estate Transactions and Property Prices in San Francisco, California," MPRA Paper 72737, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:72737
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    File URL: https://mpra.ub.uni-muenchen.de/72737/1/MPRA_paper_72737.pdf
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    References listed on IDEAS

    as
    1. Jack Favilukis & Sydney C. Ludvigson & Stijn Van Nieuwerburgh, 2017. "The Macroeconomic Effects of Housing Wealth, Housing Finance, and Limited Risk Sharing in General Equilibrium," Journal of Political Economy, University of Chicago Press, vol. 125(1), pages 140-223.
    2. Christopher Mayer, 2011. "Housing Bubbles: A Survey," Annual Review of Economics, Annual Reviews, vol. 3(1), pages 559-577, September.
    3. Thaler, Richard H, 1997. "Irving Fisher: Modern Behavioral Economist," American Economic Review, American Economic Association, vol. 87(2), pages 439-441, May.
    4. Allen, Paul R & Shilling, James D & Sirmans, C F, 1987. "Contracting, Contingencies and Single-Family House Prices," Economic Inquiry, Western Economic Association International, vol. 25(1), pages 159-164, January.
    5. Quan, Daniel C & Quigley, John M, 1991. "Price Formation and the Appraisal Function in Real Estate Markets," The Journal of Real Estate Finance and Economics, Springer, vol. 4(2), pages 127-146, June.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Real Estate; Mortgage; San Francisco Tech Pulse; Business Cycles; Interest Rates;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E4 - Macroeconomics and Monetary Economics - - Money and Interest Rates
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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