Search

All-Cash Sales Should Normalize by 2017

by devteam January 15th, 2015 | Share

Cash sales droppedrnon a year-over-year basis for the 22nd consecutive month in October andrnCoreLogic is projecting they will return to their pre-crisis levels byrn2017.  All-cash transactions representedrna slightly higher share of transactions in October than in September, 35.5rnpercent versus 35.0 percent, but the company said the relative share of thosernsales typically rises during the fall and winter months.  They suggest that year-over-year comparisonsrnare more indicative of trends.</p

And that trend isrnundeniably down.  Compared to Octoberrn2013 cash sales have retreated by over 3 percentage points.  In October 2013 they made up 38.7 percent of homernsales. The peak for cash sales came in January 2011 at 46.4 percent.  After beginning a steady decline in Januaryrn2013 cash sales are on track to return to their pre-crisis level of around 25rnpercent by 2017. </p

The share of allrncash sales was by far the highest for lender owned (REO) property at 58.7rnpercent.  REO however now accounts forrnsuch a minimal percentage of home sales (7.8 percent in October) it has littlernimpact on overall cash sales figures.  In January 2011, when the cash salesrnshare was at its peak, REO sales made up 23.9 percent of total sales. Thirty-five percent of re-sales (existingrnhomes) were cash transactions, 33 percent of short sales, and 16.8 percent ofrnnewly constructed homes.</p

</p

Delaware had the largest share of cashrnsales at 58.3 percent, followed by Alabama (51.3 percent), Florida (51.1rnpercent), New York (44.4 percent) and Michigan (43.1 percent).  The Miami metropolitan areas topped the listrnof the nation’s largest 100 Core Based Statistical Areas (CBSAs) measured byrnpopulation at 56.6 percent, followed closely by the West Palm Beach-Boca Ratonrnarea at 56.1 percent.  Fort Lauderdale,rnDetroit and Cape Coral-Fort Myers all had cash sales in the 55-56 percentrnrange.  </p

</p

All Content Copyright © 2003 – 2009 Brown House Media, Inc. All Rights Reserved.nReproduction in any form without permission of MortgageNewsDaily.com is prohibited.

About the Author

devteam

Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, is a PASBA member accountant located in Londonderry, New Hampshire.

See all blogs
Share

Comments

Leave a Comment

Leave a Reply

Latest Articles

Real Estate Investors Skip Paying Loans While Raising Billions

By John Gittelsohn August 24, 2020, 4:00 AM PDT Some of the largest real estate investors are walking away from Read More...

Late-Stage Delinquencies are Surging

Aug 21 2020, 11:59AM Like the report from Black Knight earlier today, the second quarter National Delinquency Survey from the Read More...

Published by the Federal Reserve Bank of San Francisco

It was recently published by the Federal Reserve Bank of San Francisco, which is about as official as you can Read More...