Cash Sales Lowest Since 2007
The all-cash share of residential sales dipped below 30 percent in June, the first time this has happened since 2007. CoreLogic said on Tuesday that cash accounted for 29.3 percent of home sales during the month, a decrease of 2.5 percentage points since June of last year. On a monthly basis those sales were 0.9 percentage points lower than in June.
Cash sales, which prior to the housing crisis averaged about 25 percent per month, peaked in January 2011 at 46.6 percent. At the current rate of decline CoreLogic estimates cash sales should return to "normal" levels by mid-2018.
Sales of lender-owned real estate (REO) had the largest all-cash share at 56.2 percent. However, as those sales now represent only 4.9 percent of all transactions, their all-cash transactions have little impact on the overall statistics. The cash share of resales, which account for 84 percent of the residential market, was 28.9 percent had the largest impact. Short sales and newly constructed homes bought without mortgages at rates of 27.7 percent and 15.2 percent respectively.
New York had the largest share of cash sales at 45.3 percent, followed by Alabama (44.6 percent), Florida (40.6 percent), Oklahoma (38.6 percent) and Indiana (35.7 percent). Of the nation's largest 100 Core Based Statistical Areas (CBSAs) measured by population, Detroit had the highest cash sales share at 56.5 percent, followed by five Florida metros, West Palm Beach-Boca Raton (49.3 percent), Miami (47.9 percent), Sarasota-Bradenton, (47.7 percent) and Cape Coral-Fort Myers (46.1 percent).