California cash sales surge while total sales volume plunges: Cash sales made up 30 percent of total sales last month.

Dr. Housing Bubble reports:

Blame it on too much paperwork. The house humping cheerleaders are blaming the drop in sales volume on too much paperwork instead of the true underlying culprit. The real reason that sales collapsed was that prices are largely becoming unaffordable to most families. In virtually every part of California home prices are out of reach for families without them diving into massive mortgage debt for a piece of crap stucco box. Taco Tuesday baby boomers of course would like home prices to remain inflated but now they are getting a taste of economic karma when their boomerang kids move back home as adults. An indication of this insanity in California is based on the volume of investors buying homes. Last month 30 percent of home purchases went to all cash buyers. This was the highest amount going back to 2012. However, sales volume took a big dive. In other words, a large portion of those that can buy are investors. Is this trend sustainable?

Thanks Federal Reserve!