Cash sales 32.1% of home sales in February in Prov. metro

THE CASH sales share in the Providence-Warwick metropolitan area was 32.1 percent in February, lower than the national average of 37.9 percent. / COURTESY CORELOGIC
THE CASH sales share in the Providence-Warwick metropolitan area was 32.1 percent in February, lower than the national average of 37.9 percent. / COURTESY CORELOGIC

PROVIDENCE – The cash sales share in the Providence-Warwick metropolitan area was 32.1 percent in February, an increase of 3.3 percentage points compared with the same period a year ago, according to CoreLogic.
Rhode Island’s cash sales share was 33.4 percent in February, a four-tenths of a percentage point decline from February 2014.

The cash sales share for the Providence metro and Rhode Island were lower than the national cash sales share rate of 37.9 percent in February.
The national rate dropped 2.7 percentage points from February 2014; the year-over-year share has fallen each month since January 2013, making February the 26th consecutive month of declines.
The cash sales share reached its peak in January 2011, when cash transactions made up 46.5 percent of total home sales nationally. Prior to the housing crisis, the cash sales share of total home sales averaged approximately 25 percent. CoreLogic predicts that if the pattern of declines continue, the share should decrease to 25 percent by mid-2018.
Nationally, real estate-owned sales had the largest cash sales share in February at 59.8 percent, followed by resales at 37.6 percent, short sales at 34.3 percent and newly constructed homes, 15.8 percent. While the percentage of real estate-owned sales that were all cash transactions remained high, REO transactions made up 9.7 percent of all sales in February. In January 2011, when the cash sales share was at its peak, REO sales made up 23.9 percent of total home sales. Resales make up the majority of home sales at about 80 percent, and therefore have the biggest weight on the total cash sales share, CoreLogic said.
Of the nation’s largest 100 core-based statistical areas measured by population, Detroit-Dearborn-Livonia, Mich. had the highest share of cash sales at 60.5 percent, followed by Cape Coral-Fort Myers, Fla. at 59.4 percent and Miami-Miami Beach-Kendall, Fla., 59.3 percent. Washington-Arlington-Alexandria, D.C.-Va.-Md. had the lowest cash sales share at 16.9 percent.

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