The plague of all-cash buyers: Massive market distortions being created by easy money policy. 42 percent of recent purchases recorded no conventional mortgage.

Dr. Housing Bubble reports:

A plague on both of your houses. Unless of course, you are buying a few extra homes as investments and then the market is conveniently setup for you. The Fed has created a housing market dominated by a herd of investors. There is no hyperbole in this statement when the latest report shows that for the latest month of home sales, 42 percent of sales went to “all-cash” buyers. Keep in mind this data reflects sales where no loan is recorded at the sales date thus eliminating most traditional home buyers. The all-cash segment of buyers has typically been a tiny portion of the overall sales pool. The fact that so many sales are occurring off the typical radar suggests that the Fed’s easy money eco-system has created a ravenous hunger with investors to buy up real estate. Why? The rentier class is chasing yields in every nook and cranny of the economy. This helps to explain why we have such a twisted system where homeownership is declining yet prices are soaring. What do we expect when nearly half of sales are going to investors? The all-cash locusts flood is still ravaging the housing market.

Just a reminder to those who those a housing crash can't happen again.