Housing Market Fake-Outs Stump Economists

Surprise! Baby boomers aren’t downsizing
Fed’s Williams sees no rate hike until after mid-2015

June 29, 201412:31 PM ET

npr7-2-14Many homebuyers have been throwing down cold hard cash for their entire house purchase in recent years. Some are baby-boomers who sold a bigger house and are downsizing. Some are investors. Others are from outside the U.S.

“Top of the list in terms of cash sales in the first quarter was Florida, with 64 percent of all sales going to cash buyers, followed by New York, 59 percent; Alabama, 56 percent,” says Daren Blomquist, vice president of RealtyTrac, which did a study on cash purchases.

Many housing economists, however, think the numbers in that study are overstated — which suggests that even some experts aren’t certain about exactly what’s happening.

More than six years after the housing crash, economists are still trying to figure out what exactly is going on with the housing market.

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