CoreLogic: Cash sales fall for Prov. metro homes in June

CORELOGIC said cash sales for homes in the Providence-Warwick-Fall River metropolitan area declined in June by 9.3 percentage points compared with June 2015. / COURTESY CORELOGIC
CORELOGIC said cash sales for homes in the Providence-Warwick-Fall River metropolitan area declined in June by 9.3 percentage points compared with June 2015. / COURTESY CORELOGIC

PROVIDENCE – Cash sales for homes in the Providence-Warwick-Fall River metropolitan area declined in June by 9.3 percentage points compared with June 2015, CoreLogic said Tuesday.

Cash sales accounted for 22.3 percent of total home sales in the Providence metro, which was lower than the national cash sales share of 29.3 percent, which fell year over year by 2.5 percentage points.

June marks the first time the nationwide cash sales share has been below 30 percent since late 2007, falling by 0.9 percentage points on month over month compared with May. In January 2011, the cash sales share peaked – cash transactions accounted for 46.6 percent of total home sales nationally. Prior to the housing crisis, the cash sales share of total home sales averaged approximately 25 percent. If the cash sales share continues to fall at the same rate it did in June, the share should hit 25 percent by mid-2018, CoreLogic said.

Nationwide, real estate-owned sales had the largest cash sales share in June at 56.2 percent, followed by resales at 28.9 percent, short sales at 27.7 percent and newly constructed homes at 15.2 percent.

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Although the percentage of REO sales within the all-cash category remained high, REO transactions accounted for only 4.9 percent of all home sales in June. During the cash sales share peak period in January 2011, REO sales represented nearly 24 percent of total home sales.

Resales, which have the biggest impact on the total cash sales share due to making up the majority of home sales, totaled approximately 84 percent in June.

Of the nation’s largest 100 core-based statistical areas, Detroit-Dearborn-Livonia, Mich., had the highest cash sales share at 56.5 percent, while Syracuse, N.Y., had the lowest cash sales share at 12.6 percent.

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