Cash sales fell to less than 30% for the first time since the housing crisis began, according to the latest report from CoreLogic.
Cash sales decreased in June, down 2.5 percentage points from last year and 0.9 percentage points from May to 29.3%.
This is down significantly from the cash sales peak in January 2011 of 43.3% of the market share. Before the housing crisis, cash sales averaged about 25% of market sales. If cash sales continue falling at this rate, it can hit the 25% mark by mid-2018.
Real estate-owned sales had the largest cash sales share in June at 56.2%. Resales came in second at 28.9%, followed by short sales at 27.7% and newly constructed homes at 15.2%.
The percentage of REO sales may be the most popular among all-cash sales, but it only makes of 4.9% of all home sales in June. When cash sales hit their peak in January 2011, REOs made up 23.9% of total home sales.
Resales usually make up the majority of sales, they hit 84% in June, and therefore have the greatest impact on the total cash sales share.
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(Source: CoreLogic)
New York had the largest cash sales share of any state at 45.3%, followed by Alabama at 44.6%, Florida at 40.6%, Oklahoma at 38.6% and Indiana 35.7%.
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(Source: CoreLogic)
