Sign #3,485 that we might be in another real estate bubble: In July, almost half of all home sales were all-cash deals.
You read that right. Real estate data company RealtyTrac reported last week that 40% of all home sales in July were purchased by buyers with cash upfront. On the surface, this looks like a sign that our economy could be improving. But MarketWatch reports that this trend is largely unsustainable, due to the driving forces behind these all-cash deals: Investors, retirees and the wealthy.
This stat also represents yet another barrier for first-time home buyers, who are already feeling the pressure of tight mortgage lending requirements plus rising interest rates. At this rate, the American dream of home ownership will become a luxury item.
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