All-Cash Sales Fall To Six-Year Low

All-Cash Sales Fall To Six-Year Low

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.

Reference core logic

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