Has the housing market really recovered when almost 50% of all home sales are now cash sales? Cash sales are from investors which means they are buying to flip the house as opposed to holding long-term. Tighter credit standards have driven many wanna be homeowners from the market. Saw an article yesterday that up to 25% of the home sales in Pierce County (Tacoma) are now investor driven – not homeowners. A housing market driven by the cheap money policy of the Fed where large investors can borrow cheap money and invest in real estate?
via Nearly 50% Of All Home Sales Now Cash, As Institutional Investor Activity Hits New High – Forbes.