Foreign buyers with cash do exist. They influence the market directly to a small degree. A more powerful but indirect effect is that local buyers tell themselves that foreign money is contributing to ongoing market strength.
This from ryedawg76 4 Dec 2009 11:00 am at RE Talks -
“I just sold a condo to a buyer from Asia who’s paying all cash. What does that say about the Vancouver market? Interest rates may be influencing the prices to some degree but foreign investors with boatloads of cash and an appetite for real estate are the biggest contributors to the lofty but relatively stable prices we are seeing.”