CoreLogic: Home cash sales continue downward trend

PROVIDENCE – Home cash sales are continuing to fall each month nationwide, according to data firm CoreLogic, which released cash sales data on Tuesday.

CoreLogic said that cash sales made up 32.9 percent of all home sales in July – the lowest share since August 2008. Cash sales fell one-tenth of a percentage point from June. Year-over-year shares have fallen each month since January 2013. In July 2013, cash sales were 35.9 percent.

Before the housing crisis, CoreLogic said cash sales averaged approximately 25 percent. The peak occurred in January 2011 when cash transactions made up 46.3 percent of total home sales.

Real estate-owned sales had the largest cash sales share in July at 56.3 percent, followed by re-sales (32.4 percent), short sales (31.1 percent) and newly constructed homes (16 percent).

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While the percentage of real estate-owned sales that were cash transactions remained high, real estate-owned transactions made up only 7.1 percent of total sales in July.

In January 2011, when cash sales were at the peak, real estate-owned sales made up 23.9 percent of total sales.

Among the states, Florida had the largest share of any state at nearly 50 percent, followed by Alabama, 47.6 percent; New York, 44.5 percent; West Virginia, 42 percent, and Idaho, 39.9 percent.

Rhode Island had 29.5 percent of its total home sales as cash sales, while Connecticut had 31.3 percent; New Hampshire, 28.9 percent; Maine, 20.4 percent; and Massachusetts, 20.1 percent. Data from Vermont was not provided.

Of the nation’s largest 100 core-based statistical areas measured by population, West Palm Beach-Boca Raton-Delray Beach, Fla., had the highest share of cash sales at 57.9 percent, followed by Cape Coral-Fort Myers, Fla,. at 57.3 percent; Miami-Miami Beach-Kendall, Fla., 56.5 percent; North Port-Sarasota-Bradenton, Fla., 55.8 percent; and Detroit-Dearborn-Livonia, Mich., 55.8 percent. Washington-Arlington-Alexandria, D.C.-Va.-Md., had the lowest cash sales share at 15.4 percent.

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