More homes being paid for in cash

32% of all homes purchased in January were paid for in cash, a huge increase from the 26% a year ago, says the National Association of Realtors.

Roughly 30% of all home sales in Southern California were paid for in cash, in January of this year. In distressed markets of Pheonix and Las Vegas, cash sales were over 50% of the market.

The appeal of cash deals is obvious, as cash means not having to wait for banks or appraisals, and increases the chance that the deal goes through. As such, people are often willing to accept less money, as long as the deal is paid for up front.