If There's A Recession On---Why Are There So Many Cash Buyers Right Now?

Driving to the office the other day, bored with the usual morning chatterboxes, I was surfing the old radio dial when I ran across a local guy talking with great vehemence about the "economic idiots" spewing doom & gloom at every opportunity.

He went on to castigate expert after expert, refuting their findings without a whole lot of supporting evidence to back up his alternate opinion...until the callers started chiming in. 

Call after call was a business owner or manager talking about how business wasn't booming, but was steady and strong.  I was beginning to think that he had stacked the phone lines with buddies when I heard something startling come over the airwaves!  There was a real estate agent talking about the shocking amount of cash buyers who were coming out of the woodwork and snapping up property.  I listened even closer, and I realized that it was one of the agents in my brokerage that had started the "Foreclosure Bus" with some other agents in the office.  In the process of pre-qualifying people wanting a seat on the bus, nearly 40% of those wanting in on the tour were bringing certification of funds letters to pay cash for properties.  Given that Tucson averages 16% cash transactions on a regular basis, this is incredible!

I had no idea!  Then I looked at my own business in the new year--I'm running at 75% cash buyers--it just had never dawned on me.

Hmm...how can we be in a recession when people are willing to part with their cash so readily?

By the way, the "Foreclosure Bus Tour" is so popular with investors, we are getting calls from all over the country and may consider adding another 30-passenger bus if need be:  Call me if you want a seat on The Pepper Group's Bus...cash or not!