Cash Sales Share Falls to Lowest Level Since September 2008

first_img The Week Ahead: Nearing the Forbearance Exit 2 days ago Subscribe Cash Sales Share Falls to Lowest Level Since September 2008 Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days ago Share Save About Author: Brian Honea Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Brian Honea’s writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master’s degree from Amberton University in Garland. center_img Related Articles Governmental Measures Target Expanded Access to Affordable Housing 2 days ago July 16, 2015 1,382 Views Previous: CFPB Launches New Monthly Report Series Analyzing Trends in Consumer Complaints Next: Latest Fannie Mae NPL Sale Includes Smaller ‘Community Impact’ Pool Sign up for DS News Daily Demand Propels Home Prices Upward 2 days ago The cash sales share of total home sales in April 2015 was 33.7 percent, a drop of 3.7 percentage points from the previous April (37.4 percent), making April 2015 the 28th consecutive month in which the cash sales share experienced a decline, according to CoreLogic’s April 2015 Cash Sales Data released Thursday.The 33.7 percent share is the lowest for cash sales since September 2008, at the beginning of the housing crisis.The cash sales share has declined year-over-year every month since January 2013. The share declined by 0.9 percentage points month-over-month in April, although year-over-year comparisons provide a more accurate picture for cash sales share due to seasonality in the housing market, according to CoreLogic.”The cash share of home sales continues to decrease due to declines in investor activity as well as declines in distressed sales,” CoreLogic senior economist Molly Boesel said. “The consistent monthly reduction in the number of purchasers using cash to pay for a home is indicative that the housing market continues to move to normal.”At their peak in January 2011, cash sales accounted for 46.5 percent of total home sales nationally. The cash sales share averaged about 25 percent prior to the housing crisis in 2008. Should the cash sales share continue its current rate of decline, it should be back to its pre-crisis level of 25 percent by the middle of 2017, according to CoreLogic.Sales of REO properties had the largest cash sales share in April 2015 with 56.6 percent, and it was the only sales category in which cash sales share experienced a year-over-year increase. The sales category with the next highest cash sales share was resales with 33.3 percent, followed by short sales (30.4 percent) and new home sales (15.3 percent), according to CoreLogic.CoreLogic reported that while the share of REO sales that were all-cash transactions remained high, REO sales comprised only 7.4 percent of all home sales in April – down from the peak of 23.9 percent reached in January 2011. The majority of home sales in April 2015 were resales (about 81 percent), meaning resales have the greatest impact on the total share of cash sales.The states with the largest cash sales share in April 2015 were Florida (51.4 percent), Alabama (48.5 percent), West Virginia (48.3 percent), New York (45.4 percent), and Kentucky (41.4 percent). Of the nation’s 100 largest core-based statistical areas, those with the highest cash sales share were West Palm Beach-Boca Raton-Delray Beach, Florida (59.1 percent), North Port-Sarasota-Bradenton, Florida (58.5 percent), Cape Coral-Fort Myers, Florida (58.1 percent), Detroit, Michigan (58.0 percent), and Fort Lauderdale-Pompano Beach-Deerfield Beach, Florida (56.9 percent). The CSBA with the lowest cash sales share was Syracuse, New York (11.0 percent), according to CoreLogic.  Print This Post Home / Daily Dose / Cash Sales Share Falls to Lowest Level Since September 2008 Tagged with: Cash Sales CoreLogic REO sales Resales Short Sales Cash Sales CoreLogic REO sales Resales Short Sales 2015-07-16 Brian Honea in Daily Dose, Featured, Market Studies, Newslast_img

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