Many key housing indicators are returning to normal. The percentage of homes purchased for cash has fallen to 30.8% of total home sales according to CoreLogic:
The cash sales share peaked in January 2011 when cash transactions made up 46.5 percent of total home sales nationally. Prior to the housing crisis, the cash sales share of total home sales averaged approximately 25 percent. If the cash sales share continues to fall at the same rate it did in July 2015, the share should hit 25 percent by mid-2017.
In the years following the housing crisis, cash sales were inflated by investors – especially those seeking distressed situations.
Real estate-owned (REO) sales had the largest cash sales share in July 2015 at 56 percent. Resales had the next highest cash sales share at 30.2 percent, followed by short sales (28 percent) and newly constructed homes (15.6 percent). While the percentage of REO sales that were all-cash transactions remained high, REO transactions made up only 6.1 percent of all sales in July 2015. In January 2011 when the cash sales share was at its peak, REO sales made up 23.9 percent of total home sales.
Of the nation’s largest 100 Core Based Statistical Areas (CBSAs)2 measured by population, West Palm Beach-Boca Raton-Delray Beach, Fla. had the highest cash sales share at 53.2 percent, followed by Miami-Miami Beach-Kendall, Fla. (52.2 percent), North Port-Sarasota-Bradenton, Fla. (50.1 percent), Fort Lauderdale-Pompano Beach-Deerfield Beach, Fla. (48.4 percent) and Cape Coral-Fort Myers, Fla. (47.9 percent). Washington-Arlington-Alexandria, D.C.-Va.-Md. had the lowest cash sales share at 13.6 percent.
Read the full story at Corelogic.com –