Nearly half of U.S. home sales are cash transactions.
That's right. Goldman Sachs just reported that cash sales account for 57 percent of all residential home sales versus 19 percent in 2005. Other estimates are not as high, but still range from 40 percent to 50 percent. That's amazing. And that's not just new homes; it's all homes.
So, do you think a lot of first-time homeowners are buying their homes with cash?
You've got to be kidding. Even most second- and third-time homeowners probably aren't paying 100 percent cash.
The fact that this bull market is driven so heavily by cash purchases tells you that it's not a real housing market. It's another investment bubble.
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