CoreLogic: Cash sales fall in October in Prov. metro

PROVIDENCE – Cash sales accounted for 22.7 percent of total home sales in the Providence-Warwick metropolitan area in October, a 7.9 percentage point decrease from October 2014, CoreLogic said Thursday.
Nationally, cash sales also fell, accounting for 33.9 percent of total home sales in October, a drop of 2.6 percentage points from the year before, CoreLogic said.
The cash sales share peaked in January 2011, when cash transactions were 46.6 percent of total home sales nationally.
Before the housing crisis, the cash sales share of total home sales averaged approximately 25 percent. CoreLogic said if the cash sales share continues to drop at the same rate as it did in October, the share should hit 25 percent again by mid-2018.
Real estate-owned sales had the largest cash sales share nationally in October at 59.7 percent; resales had the next-highest cash sales share at 33.2 percent, followed by short sales at 31.3 percent and newly constructed homes at 16.7 percent, CoreLogic said. Real estate-owned sales may have had the largest cash sales share, accounting for 7.3 percent of all sales in October, but when the cash sales share was at its peak five years ago, REO sales represented 23.9 percent of total home sales, CoreLogic said.
Among the nation’s 100 largest core-based statistical areas, Miami-Miami Beach-Kendall, Fla. had the highest cash sales share at 51.6 percent. Syracuse, N.Y. had the lowest, at 13.9 percent.

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