The market share of all-cash home sales continues to fall and in June made up the lowest share since the beginning of the financial crisis. CoreLogic said today that cash sales comprised 33 percent of all home sales in June compared to 34.4 percent in May. Prior to the crisis cash transactions generally averaged 25 percent of all home sales. Cash sales hit a peak of 46.2 percent of sales in January 2011.
The share was also down on an annual basis. Cash sales made up 36.3 percent of sales in June 2013. The year-over-year share has fallen each month since January 2013.
Real estate owned (REO) sales had the highest share of cash transactions at 55.3 percent. However, those sales made up only 7.2 percent of all home sales in June. When cash-sales peaked in January 2011 REO accounted for 24 percent of all sales and so had a much larger impact on the overall cash percentages. The second highest share of cash transactions at 32.5 percent went to re-sales. Short sales followed at 31.8 percent and newly constructed homes trailed at 16.2 percent.
Florida had the largest share of cash transactions of any state at 50.9 percent, followed by Alabama (48.1 percent), New York (44.6 percent), Kentucky (40.1 percent) and Nevada (40 percent). Of the nation’s largest 100 Core Based Statistical Areas (CBSAs) measured by population, Cape Coral-Fort Myers, Fla. had the highest share of cash sales at 61.2 percent, followed by West Palm Beach-Boca Raton-Delray Beach, Fla. (60.6 percent).
Senior Director, Coldwell Banker New Homes Division
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