There has been a surprisingly high amount of cash home purchases in 2011, despite record low mortgage rates. Tight lending standards and a desperate search for yield by investors are partly to blame for fueling more cash home deals, especially among distressed properties. According to data from Housing IntelligencePro , 38% of homes purchased in 2011 were bought with all cash. That’s up from 34% in 2010, and double the 19% rate in 2006. The trend is likely to continue in the near term, with investors nabbing more home homes as families abandon ownership and return to rentals.
