I think a lot of them are from Taiwan and China. They have lots of cash, they don’t like to borrow money (in general), and education is all-important to them. So they’re going to find what they think is the best school district and buy a house there with cash. They communicate with each other, and once an area gets a good reputation, word spreads. It’s happened in the Bay area, L.A., and San Diego (and no doubt other metropolises as well). A particular area gets the reputation. In San Diego, it’s Carmel Valley.

Not sure what percentage of the cash buyers are Chinese, but I know that it’s common for them to pay cash.