My son works in banking, it absolutely IS true. Where I live, it's closer to 50%.
It's mostly older people, who are downsizing for retirement. They have a lot of equity in the home they're selling... using it to pay cash for smaller houses.
It's that, and... people speculating on foreclosures, that are FAR less expensive than normal houses..
Many around here, in the inner city areas, are selling for $10-50K. Then, the new owner rents it out to poor minorities, who are on Section 8 Federal housing support.
The renters then rent out rooms, for cash... and, EVERYONE makes money... thanks to Good 'Ol Uncle Sam.
IT's a helluva RACKET!
More Section 8 Housing For Obama Voters
The Obama administration, in a major shift on housing policy, is abandoning George W. Bush’s vision of creating an “ownership society’’ and instead plans to pump $4.25 billion of economic stimulus money into creating tens of thousands of federally subsidized rental units in American cities.
http://www.liveleak.com/view?i=75c_1250607041