More People Are Buying Homes With Cash

Cash deals have doubled from 15 percent of homes sales since the housing market started to crumble in late 2008, according to the National Association of Realtors. They accounted for 32 percent of all home deals nationwide in November, with investors leading the trend away from mortgages. Retirees, looking to trade down, represent about 12 percent of cash sales. Other cash buyers include vacation home purchasers at 5 percent and international buyers at 2 to 3 percent. Additionally, there is a contingent of house-hunters who pay in cash in order to avoid the hassle of lining up a mortgage, which has become more difficult to do since the housing meltdown, and to free themselves of the obligation to pay 30 years’ worth of interest. | Read More