Cash home sales in May decreased month-over-month and year-over-year, making the first five months of 2016 the slowest start to a year since 2008, according to a report from CoreLogic.

In May, cash sales made up 30% of total home sales, which is down 2.5 percentage points from May 2015, and 1.7 percentage points from April. For the first five months of 2016, cash sales averaged 33%.

For comparison, cash sales peaked in January 2011 at 46.6% of total home sales nationally. Before the housing crisis, cash sales averaged 25%. If the rate of decrease continues at its current rate, cash sales would hit pre-crisis levels by mid-2018.

Real estate-owned sales had the largest share of cash sales in May, coming in at 56.6%. Resales were next with 29.8%, followed by short sales at 27.9% and newly constructed homes at 14.6%.

While the percentage of REO cash sales was the highest, it made up only 5.1% of total market sales in May. Instead, resales had the highest impact at 83% of market sales in May.

In January 2011 when cash sales hit their peak, REO sales made up 23.9% of the market.

Click to Enlarge

CoreLogic

(Source: CoreLogic)

Of all the states, Alabama had the largest share cash sales at 45.2%, followed by New York at 45.1%, Florida at 42.4%, New Jersey at 36.4% and Indiana at 36%.

Of the largest 100 Core Based Statistical Areas, measured by population, the area with the largest share of cash sales was Detroit-Dearborn-Livonia, Michigan, at 52.3%. This was followed by West Palm Beach-Boca Raton-Delray Beach, Florida, at 52.3%, Philadelphia at 52%, North Port-Sarasota-Bradenton, Florida, at 50.3% and Cape Coral-Fort Myers, Florida, at 49.3%.

Click to Enlarge

CoreLogic

(Source: CoreLogic)

Most Popular Articles

CFPB to consider changing or eliminating TRID rule

The CFPB has been taking a long, hard look at some of its rules and regulations. Next up on its list to review is TRID, and it looks like eliminating the rule entirely is not off the table.

Nov 20, 2019 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please