Cash sales hit lowest level since 2008

by Ryan Smith25 Mar 2016
2015 saw the lowest level of cash sales in eight years, according to new data from CoreLogic.

The analytics firm said Thursday that 33.9% of all home sales in 2015 were cash sales. That’s the lowest annual share since 2008.

December saw cash sales for 33.4% of all home sales – a larger share than usual for December, according to CoreLogic, but still down 2.8 percentage points from the cash share in November. That month’s larger-than usual cash sell share was likely a temporary aberration caused by the introduction of the TRID disclosure rule.

Real estate owned properties saw the largest share of cash sales at 59.2% -- but REO sales accounted for less than 7% of all sales. CoreLogic found that 30.9% of short sales and 15.4% of newly constructed homes were cash sales.

Before the housing crisis, the cash sale share of home sales averaged around 25%. According to CoreLogic, if the cash share continues to fall at the same rate it did in December, it should hit traditional levels by the middle of 2017. The cash sale share peaked in 2011 at 46.6%.



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