- The difficulty in applying for and getting a large loan from lenders, mainly due to the difficulty appraisers face in valuing luxury property.
- Reflects speculation by wealthy investors who believe home prices are near the bottom.
- Housing is thought by many to be a wise financial investment, a place to put some of their money.
- Foreclosures becoming a significant factor in the market.
- Investors buying auction sales in order to buy and flip homes.
- Investors looking for a fast close.
Overall, cash deals accounted for 27.8% of Southern California home sales last year–the most since 1988 according to DataQuick, and double the average of 13% for the last decade.
All of these cash transactions are making it difficult for traditional buyers who must finance their purchases.
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