An eye-opening report by Goldman Sachs Group last week showed that cash deals made up approximately fifty percent of all home sales during both 2012 and the first half of 2013. The report authors used data from the Census Bureau, National Association of REALTORS®, Mortgage Bankers Association and Lender Processing Services to come to their conclusions.
The country has been slowly climbing toward the fifty percent mark over the past seven years with cash deals making up only 20% of sales before the housing crash and steadily increasing to the level we are seeing now. Most anyone in the industry would assume this group of buyers is largely made up of investors, but the report suggests it is difficult to pinpoint any one group when the volume of cash sales is this large. The authors do say that foreign and/or wealthy buyers are a significant part of the mix.