Homes financed by cash have been increasing in markets that have been hard hit by the foreclosure situation, a sign that bargain hunters are out looking for deals and ready to BUY!
Approx. 1/3rd of sales in Phoenix were all cash in January 2009. Sacramento had 24% of sales being all cash for the same time period. Miami Florida checked in with 30% of sales last month. It is sort of "Goodness, prices have fallen so low that people are willing to pay all cash are buying"
I currently have 3 properties under contract to investors that are all cash. All of these homes are bargain prices and will provide good positive cash flow for now and a re-sell for profit down the line. Last December I closed on 5 such units for clients.
It's a market where no one is getting any return in the bank and mostly negative in the stock market. An investor buys what makes them money. Right now the action is in all cash offers for undervalued real estate.