Reading this the implications scare me.
1. A huge concentration of wealth is going on and nothing is stopping it.
2. Housing prices 'rising' are in fact the result of these cash sales and are likely being financed via 'shadow' banking. (ie the declining housing inventories is straight up market manipulation)
I don't even know where to begin with all of the possibilities. 60% of current home sales are cash sales right now; up from 20% in 2007.
If this is sustainable the implication for wealth distribution is terrifying. If this is not sustainable the implication for financial crisis is terrifying.
Timothy A Wunder PhD
Clinical Associate Professor
Graduate Student Advisor
Department of Economics University of Texas at Arlington