HW Media connects and informs decision makers across the housing economy. Professionals rely on HW Media for breaking news, reporting, and industry data and rankings. Moving the Housing Market Forward.
MortgageReal Estate

CoreLogic: Fewer buyers paying cash for properties

Could reach pre-crisis point by mid-2018

Cash sales made up 33% of total home sales in March 2016, a decrease of 2.4 percentage points annually, according to a recent report by CoreLogic.

Monthly, cash sales fell by 2.8 percentage points from February. For the first three months of 2016, cash sales averaged 34.7%, the lowest start to any year since 2008.

Though below the peak of 46.6% in January 2011, cash sales are up from the pre-crisis average of 25%. If cash sales continue to fall at the same rate it did in March, they could hit the pre-crisis level by mid-2018.

Real estate owned sales had the highest percentage of cash sales at 57.2%. Resales came in second with 32.9%, followed by short sales at 30.6% and newly constructed homes at 14.4%.

While REO sales have the highest percentage of cash sales, REO transactions accounted for only 6.8% of all market sales in March. When cash sales hit their peak in 2011, REO sales made up 23.9% of market sales.

Resales, while having less of a percentage of cash sales than REOs, make up more of the market share at about 80%, and therefore have a larger impact.

Click to Enlarge


(Source: CoreLogic)

Alabama reported the largest percentage of cash sales at 49.8%. New York came in second at 47.5%, followed by Florida at 45.9%, Michigan at 41.8% and Indiana at 41%.

This chart shows the total percentage of cash sales from January to March per state:

Click to Enlarge


(Source: CoreLogic)

Most Popular Articles

3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please