Cash sales decline in Prov. metro in September

PROVIDENCE – Cash sales of homes fell to 22.5 percent of total sales in September in the Providence-Warwick metropolitan area, according to CoreLogic.
CoreLogic said year over year, the cash sales share in the Providence metro declined by 5.3 percentage points.
The cash sales share in the Providence metro also was lower than the national rate in September, which was 32.5 percent – that also fell by 3.4 percentage points over the year.
Nationally, the cash sales share peaked in January 2011, when cash transactions accounted for nearly 47 percent of total home sales.
Before the housing crisis, the cash sales share of total home sales averaged approximately 25 percent. CoreLogic said that if the cash sales share continues to fall at the same rate it did in September, the share should hit 25 percent by mid-2017.
Real estate-owned sales had the largest cash sales share in September nationwide at 58.3 percent. Resales had the next highest cash sales share at 32 percent, followed by short sales at 29.1 percent and newly constructed homes at 15.9 percent.
While the percentage of real estate-owned sales that were all-cash transactions remained high, real estate-owned transactions accounted for only 6.4 percent of all sales in September. In January 2011, when the cash sales share was at its peak, real estate-owned sales accounted for 23.9 percent of total home sales.
Resales, CoreLogic said, typically make up the majority of home sales (approximately 81 percent in September), and have the largest impact on total cash sales share.
In September, Alabama had the largest cash sales share of any state at 48.2 percent. Of the nation’s largest 100 core-based statistical areas measured by population, Miami-Miami Beach-Kendall, Fla., had the highest cash sales share at 50.8 percent. Syracuse, N.Y., had the lowest cash sales share at 14.1 percent.

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