Cash buyers accounted for a whopping 38 percent of home sales in 2011, up 4 percent since the previous year.  According to date compiled by Housing Research Pro, the cash trend is expected to continue,

Between tight lending standards and a desperate search for yield by investors, cash purchase of homes (especially distressed properties) became even more common in 2011 than last year.

Investors are the key buyers in the cash market as regular buyers are sticking with their current homes and opting to rent.