Cash sales are slowly turning into the endangered species of the industry, reaching the lowest share since August 2008.
Tumbling 35.9% from July 2013, cash sales made up 32.9% of total home sales in July 2014, according to CoreLogic’s latest report on July’s cash sales.
On a monthly basis, the cash sales share was mostly flat, falling only one tenth of a percentage point from June 2014. But it's important to note that cash sales share comparisons should be made on a year-over-year basis due to the seasonal nature of the housing market.
Cash sales have fallen each month since January 2013, and prior to the housing crisis, the cash sales share of total home sales averaged approximately 25%.
The peak occurred in January 2011, when cash transactions made up 46.3% of total home sales.
“A trend to watch is the cash share of re-sales, which has fallen almost 15 percentage points from its peak cash share of 47.1% in February 2011,” the report said. “This category will determine the direction of cash sales going forward, since re-sales make up the largest share at 81% of all sales.”
(Source CoreLogic, click to enlarge)