National REIA - Brad Beckett - 23 March 2017
Data powerhouse CoreLogic is reporting that for 2016, cash sales represented 32.1% of all sales – which is the lowest share seen since 2007. For December, 2016, cash sales accounted for 33.1% of all home sales, down 1.3 percentage points from December 2015. In addition, REO sales made up 5.8% and short sales made up 2% in December 2016. Distressed sales’ share was 7.8% and was the lowest for any month since October 2007. New York had the largest share of cash sales (47.9%), followed by New Jersey (47.6%), Alabama (46.1%), Michigan (44.3%) and Florida (42.1%).
- The full-year cash sales share for 2016 was 32.1%
- The cash sales share in December 2016 was 33.1%
- The full-year distressed sales share for 2016 was 8.9%
“…cash sales share peaked in January 2011 when 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 December 2016, the share should hit 25 percent by mid-2019.”