Rising Trend Of All-Cash Buyers Is Bad News For First-Time Homebuyers, Real Estate Market (VIDEO)

09/03/2013 01:57 pm ET

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.

Have something to say? Check out HuffPost Home on Twitter, Facebook, Pinterest, Tumblr and Instagram.

**

Do you have a home story idea or tip? Email us at homesubmissions@huffingtonpost.com. (PR pitches sent to this address will be ignored.)

Apartment Views From Around The World

CONVERSATIONS