Banking & Finance

Cash Sales 38% of National Home Sales in February

IRVINE, Calif. — Cash sales made up 37.9% of total home sales nationally in February 2015, down from 40.6% in February 2014. Percentages for Ohio and Pennsylvania were 43% and 40%, respectively.

The year-over-year share has fallen each month since January 2013, making February 2015 the 26th consecutive month of declines, according to a report from CoreLogic.

Month over month, the cash sales share fell by 1 percentage point. Due to seasonality in the housing market, cash sales share comparisons should be made on a year-over-year basis.

The cash sales share peak occurred in January 2011, when cash transactions made up 46.5% of total home sales nationally. Prior to the housing crisis, the cash sales share of total home sales averaged approximately 25%. If the cash sales share continues falling at the same rate it did in February, the share should decrease to 25% by mid-2018.

Florida had the largest share of any state at 54.6%, followed by Alabama (51.9%), New York (48.4%), Indiana (47.8%) and Michigan (44.9%).

Of the nation’s largest 100 Core Based Statistical Areas measured by population, Detroit-Dearborn-Livonia, Mich., had the highest share of cash sales at 60.5%, followed by Cape Coral-Fort Myers, Fla. (59.4%), Miami-Miami Beach-Kendall, Fla. (59.3%), Fort Lauderdale-Pompano Beach-Deerfield Beach , Fla. (58.5%) and West Palm Beach-Boca Raton-Delray Beach, Fla. (58.4%). Washington-Arlington-Alexandria, D.C.-Va.-Md., had the lowest cash sales share at 16.9%.

SOURCE: CoreLogic

Published by The Business Journal, Youngstown, Ohio.