Cash is the predominate financing vehicle in the real estate market in South Florida. About 7,530 homes and condos between October and December of 2010 were cash transactions according to an article in the Palm Beach Post, quoting statistics from te real estate analysis at Zwillow.
Most of these purchases were second homes with investors and international buyers driving the trend.
Stricter lending standards are part of the story. Another part is the difference in the exchange rates. For example, the Canadian dollar is worth more than the American dollar for the first time in decades.
Brazil is also a big player in our real estate market.
Many domestic buyers find that real estate is becoming a good investment again, since interest rates at our banks is less than 2%.
Cash also brings power to the table. Many times the asking price can be reduced with the incentive of a no strings attached, quick, all cash deal.