All-cash buyers make up 31 percent of residential deals

Not everybody needs a mortgage.

The December 2011 Realtors Confidence Index survey reports that all-cash buyers were 31 percent of the residential existing home sales market, down from a 2011 high of 35 percent in March.

This appears to be reflective of tight credit markets – some buyers needing to pay cash due to excessively tight credit standards plus investors preferring to pay cash.

Of those buyers who did rely on a mortgage to purchase a home, 92 percent chose fixed-rate financing in 2011, down slightly from 95 percent in 2010.

Repeat buyers were somewhat more likely to choose adjustable-rate financing than first-time buyers.