Closing Complex Loans Faster With a Digitized Client Workflow

Join us for a discussion on changes in market demographics, suppliers and how focusing on customer experience and a few simple steps during the mortgage loan process can close deals 3x faster.

engage.marketing event: All eyes on purchase

To help power your business forward, we’re bringing together the smartest minds in purchase mortgage marketing to share the insights, tactics and strategies that set leaders apart.

Home appraisal’s ugly history and uncertain future

This is Part I of a deep dive into the home appraisal industry. Today we explore the origins of the appraisal industry and its current lack of diversity.

2021 Agent Rankings now live

Today RealTrends + Tom Ferry announce the 16th annual The Thousand of America's top 1,000 real estate sales and professionals and teams.

Real Estate

Cash sales increase for second consecutive month in August

But REO share still lowest since 2007

Cash sales ticked up slightly for the second month in a row in August, according to a new report from CoreLogic.

Cash sales increased to 31.1% of total home sales in August, up from July’s 29.7%. However, this is still down 1.5 percentage points from last year. Before the housing crisis, cash sales averaged 25% of total market sales.

If the cash sales share continues to fall at the same annual rate it did in August 2016, the share should hit 25% by mid-2019. This is a big delay from last month’s prediction, which put cash sales at their pre-crisis level by mid-2018.

Real estate owned sales had the largest share of cash sales in August at 58.6%, followed by resales at 31%, short sales at 29.1% and newly constructed homes at 15.6%.

While REO sales have the highest percentage of cash sales, they make up only 4.6% of the market. Short sales make up 2.7% of the market, putting distressed sales at 7.3% of the market, the lowest share for any month since September 2007.

At their peak in 2009, distressed sales made up 32.4% of the market, and REOs were 27.9% of that. On the other hand, pre-crisis distressed sales levels averaged 2%. If the current year-over-year decrease in the distressed sales share continues, it will reach that "normal" 2% mark in mid-2018.

Click to Enlarge

cash sales

(Source: CoreLogic)

The state with the largest share of distressed sales was Maryland with 19.1%, followed by Connecticut at 18.5%, Michigan at 17.7%, New Jersey at 15.9% and Illinois at 15.3%.

North Dakota had the smallest share of the market's distressed sales at 2.6%.

Click to Enlarge

cash sales

(Source: CoreLogic)

Most Popular Articles

Mortgage forbearance drops as expiration date nears

Mortgages in forbearance fell for the 15th consecutive week last week to 4.04% of servicers’ portfolio volume ― a 12 basis point decline, according to a survey from the Mortgage Bankers Association.

Jun 14, 2021 By

Latest Articles

Title Alliance opens second branch in Washington

Pennsylvania-based Title Alliance Ltd. has added a second office in Washington, expanding its presence in the Pacific Northwest.

Jun 16, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please