Cash is still king!

All-Cash Sales Still a Third of the Market

Jann Swanson | Mortgage News Daily | Nov 12 2014 | link

Although cash sales ticked up slightly in August, a pattern that has been maintained for 14 of the last 15 years, that share of all home sales continued to retreat on a long term basis.  CoreLogic said today that cash sales had a 33.8 percent portion of the market in August, a less than one point uptick from July and was down from a 36.4 percent share in August 2013.  The percentage of cash sales has been lower on a year-over-year basis every month since January 2013.

Prior to the housing crisis, the cash sales averaged approximately 25 percent of all sales.  They peaked in January 2011 when cash transactions made up 46.3 percent of total home sales.

The largest share of cash transactions were for the purchase of lender owned real estate (REO) at 56.9 percent.  One third of existing home purchases were paid for in cash as were 31.8 percent of short sales and 16.5 percent of new home sales.  Despite the frequency that cash was used to purchase REO those sales themselves represented only 7.2 percent all home purchases in August so had little influence on overall cash numbers.

 

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Author: kimhuntkw

We specialize in Real Estate in the Pleasanton, Dublin and Livermore areas of the East Bay in California

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