My thoughts are that you should not get rattled. Even by your own research, you found that around 70% of the people in CV have mortgages. That means when you make your inquiries or write your offers, that you should see that same proportion, 3 out of 10 have cash buyers yet you are implying that this is not the case.

My rule of thumb to clients is don’t get rattled by what you are told. You cannot control the external environment. Set your strategy and pursue the home in a manner determined by how aggressive you want to be, not by what you may get told based on simple inquiries. While the market is still hot, it is not quite as hot as it was in March. There have been more homes coming on the market and of course, pricing has jumped but we are approaching the price equilibrium that happens after a major leg up.

If I looked at the past 30 closings in CV for detached homes I would be willing to bet that no more then 20% are cash. I could be wrong, but would be very surprised. The profile of the cash buyer is a trivial detail, I guess people are curious so that is why they bring it up?

Your sense about properties coming back to the market does match what I have seen. Many homes are not appraising because the leg up was so steep that there are not enough comps to justify the rates. Originating lender guidelines are forcing appraisers to find hard comps and if that cannot be done the appraisal will not come in. Some buyers will pay the difference and some will not. Stay the path and you will do okay.