A look back into 2015 shows that cash sales during the year hit their lowest point since 2008, according to a report by CoreLogic.
National cash sales totaled 33.4% of December’s home sales, and 33.9% of total annual sales, according to the report. Cash sales were down 3.3% year-over-year in December, and 2.8% monthly. The larger-than-normal decrease in December shows the elevated share reported for November, which was attributed to the new federal mortgage rules, was temporary.
Before the housing crisis, cash sales averaged 25% of total sales. Cash sales peaked in 2011 when they hit 46.6%. If cash sales continue to fall at the same rate they did in December 2015, the rate would be back to pre-crisis levels by the middle of 2017.
Real estate owned sales hold the highest percentage of cash sales at 59.2%. Resales follow at 33.4%, then short sales and newly constructed homes. Although real estate owned sales have the highest percentage of cash sales, resales comprise about 79% of the market, therefore creating the biggest impact.
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Source: CoreLogic
