CoreLogic: Cash sales fall in Prov. metro in January

CORELOGIC SAID the cash sales share of total home sales in the Providence-Warwick metropolitan area fell 9.1 percentage points over the year to 22.8 percent in January. / COURTESY CORELOGIC
CORELOGIC SAID the cash sales share of total home sales in the Providence-Warwick metropolitan area fell 9.1 percentage points over the year to 22.8 percent in January. / COURTESY CORELOGIC

PROVIDENCE – Cash sales in the Providence-Warwick metropolitan area fell 9.1 percentage points over the year to 22.8 percent of total home sales in January, CoreLogic reported Friday.
The cash sales share in the Providence metro was lower than the national cash sales share of 35.5 percent in January, which fell 4.2 percentage points over the year.

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 said if the cash sales share continues to fall at the same rate it did in January, the share should hit 25 percent by mid-2017.
Nationwide, real estate-owned sales had the largest cash sales share in January at 59.8 percent. Resales had the next highest cash sales share at 35 percent, followed by short sales at 31.7 percent and newly constructed homes at 17 percent. Resales typically make up the majority of home sales (about 79 percent in January), and therefore have the biggest impact on the total cash sales share.
Of the nation’s largest 100 core-based statistical areas measured by population, Detroit had the highest cash sales share at 65.6 percent. Syracuse, N.Y., had the lowest cash sales share at 11.6 percent.

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