More than half of all homes sold last year and in 2013, so far, have been purchased mortgage-free, according to economists at Goldman Sachs Group. Prior to the housing crash, about 20 percent of all homes sold were purchased without financing. All-cash sales have more than doubled over the last seven years.

“The surprisingly large cash-share of purchases helps to explain why home sales have jumped over the past two years despite more muted increases in broad measures of new mortgage activity, such as the MBA’s mortgage application index,” The Wall Street Journal reports.

The large share of cash buys are most likely from investors, foreign buyers, and wealthy home owners, the report notes. 

The Goldman report estimated that around 44 cents of every one dollar of homes sold presently are being financed with a mortgage. Prior to the housing crisis, that stood at 67 cents of every dollar. 

The Goldman Sachs analysts used data from the National Association of REALTORS®, Census Bureau, Mortgage Bankers Association, and Lender Processing Services to arrive at their calculations.

Source: Wall Street Journal