According to the National Association of Realtors, all-cash offers account for 33% of home sales, with international buyers taking the lead. In addition, 87% of surveyed Realtors say they are expiring constant or increasing home prices. Homebuyers, particularly first-time homebuyers, are already battling low inventory and rising home prices, but the added pressure from investors creates stiff competition, writes Fox Business.

William Delwiche, investment strategist at Baird Research & Insights, said cash buys are being bolstered by investor pools snapping up real estate, and less so by individuals looking to live in the home. “These are investment pools paying cash for houses to hopefully get returns,” he says. “It’s not necessarily a trend among individual homeowners because most people going to buy houses don’t have that kind of cash sitting around.”