12 votes

WSJ: Report: Half of All Homes Are Being Purchased With Cash

More than half of all homes sold last year and so far in 2013 have been financed without a mortgage, according to an analysis by economists at Goldman Sachs Group.

The analysis estimates that around 20% of all homes sold before the housing crash were “all-cash” sales (or around 30% of sales by dollar volume). But over the past seven years, the all-cash share of sales has more than doubled, increasing by more than 30 percentage points, according to economists Hui Shan, Marty Young and Charlie Himmelberg.

http://blogs.wsj.com/developments/2013/08/15/report-half-of-...

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

I like the trend

Fewer people opting for debt slavery. Good for them!
As for me, less then 2 years (If I can double up, less
than one year) remaining on my servitude.

It's easier to get a loan for the cash than a mortgage

I technically paid cash for my house but it was just another form of loan that didn't hinge on the house.

Bump - thanks for the info

This is how the rich get richer...

It is very difficult for the average human to secure a mortgage these days.

But anyone who can afford to buy in all cash: 1) Gets a better deal, and 2) Can refinance the money back out once they have the asset.

The Diamond Dog is a real cool cat. | Reporting on the world from an altitude of 420.

These houses being bought

These houses being bought with cash are probably the ones in Detroit that only cost a few dollars.

Please come join my forum if you're not a trendy and agree with my points of view.

Hedge funders and billionaires buying property cash.

The rest of us get to rent. Welcome to the "new normal", the same as the "old normal", only with even more wealth disparity!

That's One Way to Dump FRN's

I'm not kidding, people are dumping dollars.

The same thing happened in the late 1970's when inflation was running away and it took mortgage rates of 22% to eventually cool off the meltdown (or up) in home prices.

Iranians, I think, were major buyers of real estate in California, that time. I imagine the Chinese will be doing the same this time.

This is why it's crazy to provoke war with Iran. They have so many relatives, here, they would never start a war with us. Trade IS the best way to keep the peace.

What do you think? http://consequeries.com/

No imagination required.

No imagination required. There actually are many Chinese families buying up housing in California. They are good neighbors, generally.

when your buddy...

Can give you all the free money you need at zero percent interest what else are you supposed to do with it? When all of those at the top own all the property and price the rest of us out of the market and make us renters, will it be called serfdom?

I should have read your comment before commenting.

Dead on. Foreign oligarchs parking their illegal funds in U.S. property and billionaires using 0% interest Ben Funds to purchase property outright and flip / rent out for pure profit.

Favorite line: ""There’s no exact way to know who is responsible for all of these cash purchases."

Right. That would require a massive, nation-wide, 24/7 surveillance apparatus. Oh.