30% of existing homes sales are cash buyers

[flintlock]

Last month, all-cash buyers accounted for 30% of existing home sales, up from 25% in May 2010, and 12% two years ago, says the National Association of Realtors

http://www.usatoday.com/money/econom...up-homes_n.htm

Love the Realtor spin on this. "Buy today! It won't get any better!"

Hey, I thought you said that last year!?

I wonder how much of this is due to lack of returns in other markets? Investors looking for homes more out of desperation?

[zoog]

Re: 30% of existing homes sales are cash buyers

http://www.usatoday.com/money/econom...up-homes_n.htm

Love the Realtor spin on this. "Buy today! It won't get any better!"

Hey, I thought you said that last year!?

I wonder how much of this is due to lack of returns in other markets? Investors looking for homes more out of desperation?

I wonder how many of those are banks buying back their own foreclosures? Such as a story I posted a few months ago.

[sishya]

Re: 30% of existing homes sales are cash buyers

I am planning to close a purchase of primary residence soon. sweet 30 yr fixed rate of 4.375% for conventional loan.

[flintlock]

Re: 30% of existing homes sales are cash buyers

Thats a good point I hadn't considered zoog.

[Starving Steve]

Re: 30% of existing homes sales are cash buyers

If 30% of existing home sales are to cash buyers, that means 70% of existing home sales are facilitated with borrowed money. The deadbeats may be back at their old feed-trough, especially with record low mortgage interest rates to-day. And that raises a few questions: a.) How long will the dead-beats have jobs in this economy? b.) How many of the cash buyers are going to be in trouble in future, especially with businesses failing and the stock market falling? c.) How many of the cash buyers have debts elsewhere? d.) What would a European or Chinese financial contagion do to real estate here? e.) How long will cash buyers remain healthy? f.) What would happen when the Putz from Princeton no longer is at the Fed, and money is no longer dropt from helicopters? g.) What would happen to real estate if interest rates rise worldwide? h.) What is going to happen to real estate if carrying costs rise, and rise substantially, especially with municipalities hungry for tax revenue? i.) What is going to happen to real estate as the baby-boomers become ill and old, and later push-up flowers? j.) What is going to happen to real estate as cash big-shots get divorced? k.) What is going to happen to real estate as the tech bubble bursts and the bond bubble bursts? l.) What is going to happen to real estate values when income taxes go up? m.) What happens to the flippers when real estate can no longer be so easily flipped? n.) What happens if real estate prices go lower, or just stay in the tank for a few decades? o.) What happens in places like California and British Columbia when the electricity goes-off and stays-off because the pot-heads never built enough power plants, never built enough hydro-electric dams, de-commissioned all of the atomic-power plants, and never did any planning for the future? What is real estate going to be worth then?

Being the moron here, as usual I am lost? And don't think this can't happen because this week, for example, the power went-off in central California. The demand for power to air-condition exceeded the supply of power available on the grid. The power was out for hours--- and in temperatures up to 104F (40C) inland.

A question for the eco-frauds: Where were your thousands of supposed mega-watts of solar energy generated by your solar panels, statewide, when the power went out, on June 21, 2011, when the skies were clear, the fog was no-where to be found, the Sun was as high as it can ever get in the sky, and the day was the longest of the year????????????? The outage happened just at solar noon (1PM PDT) on June 21st.

As usual, I am baffled! Help me out here, especially since the State of California has been paying subsidies for the installation of solar panels for years and thousands of supposed mega-watts of solar-electric were installed in California. And there was a bit of wind on June 21st too, so where was all this power from windmills at Pacheco Pass and at Altamont Pass????? You guys had the good jobs; I was passed-over being a lowly geographer, so now it's question period. I would think you owe not just me, but the people of California some answers.... Thank you.