March 8th, 2011
According to a recent report in the Wall Street Journal, the domination of cash-buyers and investors has been steadily increasing since July.
Capital Markets reported that “cash buyers and investors together have driven 70% of the increase in existing home sales seen since last July, while first-time buyers have been responsible for just 6%.”
This means that home prices are lower, and are expected to continue decreasing as demand for home weakens.
Locally, Santa Clara and San Mateo home sales are also dominated by cash-buyers and investors. As more homes are pushed to sale via foreclosures, demand will lower along with housing prices.