Buyers Facing Less Competition From Cash Buyers
The percentage of cash sales fell to 33 percent of total home sales in June, marking the lowest share since September 2008, CoreLogic reports. A year ago, cash sales stood at 36.3 percent of the market; they have been falling steadily since January 2013.
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Historically, cash sales make up about 25 percent of total home sales, according to data prior to the housing crisis. In 2011, cash sales peaked at 46.2 percent of sales nationwide, CoreLogic reports.
Buyers are using cash mostly to purchase real estate–owned properties, or REOs. Fifty-five percent of REOs are all-cash transactions, followed by nearly 33 percent of resales, about 32 percent of short sales, and 16 percent of newly built homes.
The following states had the largest share of cash sales in June, according to CoreLogic:
- Florida: 50.9%
- Alabama: 48.1%
- New York: 44.6%
- Kentucky: 40.1%
- Nevada: 40%
At a metro level, Cape Coral-Fort Myers, Fla., had the highest number of cash sales at 61.2 percent in June. On the other hand, Washington-Arlington-Alexandria, D.C.-Va.-Md. had the lowest share of cash sales at 15.6 percent, among the 100 metros tracked.
Source: “Cash Sales Accounted for One in Three Home Sales in June,” HousingWire (Sept. 9, 2014)