About 29.3% of total home sales in June were all-cash transactions – a decrease of 0.9% compared with May and a decrease of 2.5% compared with June 2015, recent data from CoreLogic shows.
This marks the first time the cash sales share has been below 30% since late 2007, CoreLogic’s Molly Boesel wrote in a post in the CoreLogic Insights blog. Prior to the economic crisis, cash sales represented about 25% of all sales. Cash sales hit a peak of 46.6% in January 2011.
At the current rate of decline, the cash sales share could hit 25% by mid-2018, CoreLogic says.
Real estate owned (REO) sales had the largest cash sales share in June at 56.2%. Resales had the next-highest cash sales share at 28.9%, followed by short sales at 27.7% and newly constructed homes at 15.2%.
Although the share of cash sales for REOs remains high, REO transactions accounted for only 4.9% of all home sales in June. In January 2011, when the cash sales share was at its peak, REO sales represented 23.9% of total home sales.
The decrease in cash sales for REOs is due, in part, to the fact that prices for REOs have increased significantly in the past year.