That's a lot of cash transactions
Cash, every small business owner knows if you want to keep a transaction from “showing up on the books” you get paid in cash. It is a huge underground part of the economy. Not one I’m endorsing but everyone knows it exists.
While a cash transaction in real estate is recorded for purchase price and tax records it won’t show up any where in the reports on the number of home loans and many reports on real estate markets.
There is no reason for a cash transaction to appear in a report on mortgages, right. But they are making up a significant part of real estate transactions in 2010.
To the right is the breakdown for the closed transactions in July 2010. About 25% of these purchases were made with cash. No mortgage, no future short sale or REO. CASH.
Not only that take a look at the spread on how these purchases were financed. It used to be Conventional was the lions share, not anymore.
