Cash home sales fall in April in Providence metro

CORELOGIC said Wednesday that the cash sales share of total home sales fell 9.7 percentage points over the year in April in the Providence-Warwick-Fall River metropolitan area to 23.1 percent. / COURTESY CORELOGIC
CORELOGIC said Wednesday that the cash sales share of total home sales fell 9.7 percentage points over the year in April in the Providence-Warwick-Fall River metropolitan area to 23.1 percent. / COURTESY CORELOGIC

PROVIDENCE – The cash sales share of total home sales fell 9.7 percentage points over the year in April in the Providence-Warwick-Fall River metropolitan area to 23.1 percent, CoreLogic said Wednesday.

That’s lower than the national figure of 31.6 percent cash sales share in April. The national cash sales share fell 2.8 percentage points over the year from April 2015, CoreLogic said.
Through April, the cash sales share averaged 33.9 percent nationwide, the lowest start to any year since 2008, according to CoreLogic. The cash sales share peaked in January 2011, when cash transactions accounted for 46.6 percent of total home sales nationally. Before the housing crisis, the cash sales share of total home sales averaged approximately 25 percent.
CoreLogic predicts that the share will reach 25 percent by mid-2018 if the cash sales continue to fall at the same rate it did in April.
Nationwide, real estate-owned sales had the largest cash sales share in April at 56.7 percent. Resales had the next highest cash sales share at 31.3 percent, followed by short sales at 28.6 percent and newly constructed homes at 14.5 percent.
REO transactions accounted for only 5.7 percent of all sales in April. Back in January 2011, when the cash sales share peaked, REO sales represented nearly 24 percent of total home sales.
Resales, which typically make up the majority of home sales, totaled approximately 83 percent in April.
Florida had the largest cash sales share of any state at 45.5 percent, while Washington, D.C., had the lowest at 16 percent.

Rhode Island was at 26.2 percent compared with 35.7 percent at April 2015. Of the nation’s largest 100 Core Based Statistical Areas, Philadelphia had the highest cash sales share at 57.9 percent, while Syracuse, N.Y., had the lowest cash sales share at 13.3 percent.

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