Cash home sales share rises in January in Providence metro, R.I.

HOME SALES SHARES hold year over year in January 2017, CoreLogic reports. /COURTESY CORELOGIC
HOME SALES SHARES hold year over year in January 2017, CoreLogic reports. /COURTESY CORELOGIC

PROVIDENCE – Cash sales for homes in the Providence-Warwick-Fall River metropolitan area rose 0.2 percentage points year over year in January, accounting for nearly 23 percent of all homes sold that month, according to a CoreLogic report on Thursday.

In Rhode Island, the cash sales share rose 1.2 percentage points over the year, to 26.3 percent.

Cash sales in the Providence metro and Rhode Island were lower than the national cash sales rate of 36.5 percent, which was unchanged from January 2016.

However, the national rate was lower than five years ago, when cash sales peaked at 46.6 percent.

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Alabama reported the highest cash sales share in the country at 52 percent, followed by New York at 49.7 percent, Florida with 48.3 percent of sales, Indiana with 46 percent, and Missouri, 45.4 percent.

Real estate-owned sales accounted for 61.2 percent of all cash sales nationally, the largest cash sales share in January. Resales accounted for 36.5 percent of sales and newly constructed homes accounted for 17.7 percent. While REO sales dominate all-cash sales percentages, the number of REO sales have declined since peaking in January 2011.

Nationally, the distressed sales share of total home sales decreased 4.6 percentage points to 7 percent over the year in January. This was the lowest distressed sale share since September 2007. The distressed sales share peaked at 32.3 percent of home sales in January 2009 after the market crash. Distressed sales include real estate-owned sales (5.9 percent) and short sales (1.1 percent).

All but eight states reduced distressed sales shares year over year in January. According to CoreLogic, Connecticut reported the largest share of distressed sales in January at 17.3 percent, followed by Maryland (16.3 percent), Michigan (15.1 percent), and New Jersey (15.1 percent). North Dakota reported the smallest distressed sales share in the country at 1.2 percent.

CoreLogic’s release said that only North Dakota, Utah and the District of Columbia are close to their pre-crisis sales share levels.

Chris Bergenheim is a PBN staff writer.

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