In my neighborhood in LA almost all sales are all cash. In fact, at the time of the open house, there will usually be multiple offers of all cash.
If you like a house, you must act immediately. It will be gone almost immediately after the sign goes up. I bought mine before the sign went up and did a 2 week escrow.
A kid here in the office, right out of college just paid all cash for his first townhouse! Eek!
Where did he get the cash?