40% of San Clemente Transactions Are Cash as Interest Rates Have Little Impact on Coastal Buyers

Written by:

Alejandra Rodriguez

Date:

24 Apr 2026

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National affordability headlines often overlook how high-equity coastal markets operate under different rules, according to a Southern California realtor who tracks transaction patterns in San Clemente. In San Clemente, California, about 40 percent of home sales are completed entirely in cash. Even among financed buyers, typical down payments range from 30 to 40 percent, making interest rate changes far less significant to purchasing decisions. Joey Leisz, team lead at The Leisz Team with CENTURY 21 Affiliated, says this high-equity environment has created two separate markets: entry-level homes that attract multiple offers and luxury properties that linger unsold. National housing metrics, he adds, do not reflect this local reality.

“Interest rates are kind of an anomaly, because so many of our transactions are done cash or there’s such a hefty down payment,” Leisz explains. “Even your normal buyer is putting down sometimes upwards of 30, 40 percent.”

Buyers in this market are generally comfortable with rates between 5 and 6.5 percent. Many accept the payments given their strong equity positions or plan to refinance if rates fall. Unlike in rate-sensitive regions, small changes in borrowing costs rarely determine whether a deal moves forward.

Entry-Level Homes Move Fast

San Clemente’s housing market has split into two distinct tiers with very different dynamics. Homes priced between $900,000 and $1.2 million are selling rapidly, often with multiple offers above asking price. In contrast, luxury listings above $2.5 million can sit on the market for six to eight months and often undergo several price cuts before selling.

Leisz cites a recent example from his own neighborhood: a property listed at $999,000 attracted six offers and ultimately sold for well over $1 million. Meanwhile, homes just a few blocks away priced between $2.5 and $3 million face repeated price reductions and extended marketing periods.

“We’re almost seeing two polar markets,” Leisz says. “Entry level, which is $900,000 to $1.2 million, those homes are flying off the shelves if they’re priced correctly. But a few blocks over, homes at $2.5 to $3 million are sitting for six to eight months.”

This divide is driven more by supply constraints than by a lack of demand. Many baby boomers who own entry-level homes with significant equity are reluctant to sell, knowing that their proceeds may not go as far if they try to buy back into the same appreciating market. As a result, inventory remains tight at the entry level, while the higher end sees more properties available and fewer buyers.

Lifestyle Drives Coastal Decisions

In San Clemente and similar coastal markets, buyers are motivated more by lifestyle factors than by financing costs. Walkability, ocean views, and proximity to the beach are top priorities — criteria that national affordability models do not capture.

“People just have to really look at the properties,” Leisz says. “Especially down here, you’re selling lifestyle. It’s not just buying a piece of property.”

This focus on lifestyle over financing helps explain why the market remains competitive despite higher interest rates. Buyers view coastal homes as long-term lifestyle investments and are willing to accept higher monthly costs to secure their preferred location.

Even homes priced at $880,000 — well below the luxury tier — can offer access to the coastal lifestyle if buyers are willing to compromise on size or amenities. Leisz advises clients to set realistic expectations and prioritize location over square footage, as the value of proximity to the coast remains high.

Hyper-Local Realities

Leisz argues that national data about falling prices and affordability crises do not reflect what is happening in San Clemente and similar markets. While luxury inventory may see flat or declining prices, entry-level homes are still appreciating, leading to a divergence that broad statistics cannot capture.

“If you look at trends in real estate across the country, people say prices are coming down,” Leisz says. “But you have to look at what properties they’re talking about. The luxury market might be flatlining slightly, but at the entry level, prices are coming up.”

He urges buyers and investors to educate themselves about hyper-local market dynamics rather than relying on national headlines. Market conditions can vary widely even within a single city, and understanding these differences is essential for making sound decisions.

The Investor-Focused Approach

The Leisz Team specializes in working with investors and repeat buyers who understand the long-term appreciation potential of Southern California’s coastal markets. Leisz, who has personally bought and sold three properties in recent years, works closely with developers and has direct experience with construction and investment strategies.

Recently, the team joined Inhabit Collective, a boutique brokerage founded by Doug Eckelberger, the top agent in San Clemente. As of early 2026, The Leisz Team is approaching $10 million in year-to-date sales volume and is on track to surpass the $20 million closed in 2025.

Leisz says his main goal is to connect clients with properties that fit both their lifestyle and investment goals, whether they are downsizing retirees, first-time buyers, or investors building portfolios. As coastal markets continue to operate with different dynamics than the broader U.S. housing market, understanding local trends will be critical for anyone looking to invest in high-value Southern California communities.

Looking Ahead

The San Clemente market shows how cash-rich buyers, high equity, and lifestyle priorities can override national trends. For buyers, this means competition remains fierce at the entry level, while patience and flexibility are required at the luxury end. For investors, it highlights the need for granular, neighborhood-level insight. As national housing narratives grow more disconnected from on-the-ground realities, success in coastal California will depend on understanding the local forces that drive demand, pricing, and long-term value.

This article is intended for informational purposes only and does not constitute legal, financial, or investment advice. The views and opinions expressed herein reflect those of the individuals quoted and do not represent an endorsement of any company, product, or service mentioned. Readers should conduct their own due diligence and consult qualified professionals before making any investment decisions.