CoreLogic: Cash sales increase in Prov. metro in June

CASH SALES in the Providence-Warwick metropolitan area accounted for 31.4 percent of total home sales in June, a 4.4 percentage point increase compared with June 2014, CoreLogic said. / COURTESY CORELOGIC
CASH SALES in the Providence-Warwick metropolitan area accounted for 31.4 percent of total home sales in June, a 4.4 percentage point increase compared with June 2014, CoreLogic said. / COURTESY CORELOGIC

PROVIDENCE – Cash sales in the Providence-Warwick metropolitan area accounted for 31.4 percent of total home sales in June, a 4.4 percentage point increase compared with June 2014, CoreLogic said Tuesday.
Providence-Warwick’s cash sales share was only slightly higher than the national cash sales share of 31.3 percent, CoreLogic said. Cash sales nationwide were higher in June 2014, comprising 33.9 percent of total home sales.
CoreLogic said that nationwide, the year-over-year share has fallen each month since January 2013. The cash sales share peaked nationally in January 2011 when cash transactions comprised 46.5 percent of total home sales.
Before the housing crisis, the cash sales share of total home sales averaged approximately 25 percent nationwide. CoreLogic said if the cash sales share continues to fall at the same rate it did in June, the share should hit 25 percent again by mid-2017.
Of the nation’s largest 100 core-based statistical areas, West Palm Beach-Boca Raton-Delray Beach, Fla., had the highest cash sales share at 55.5 percent in June. Washington-Arlington-Alexandria, DC-Va.-Md., had the lowest cash sales share at 13.4 percent, CoreLogic said.

Nationwide, real estate-owned sales had the largest cash sales share in June at 57 percent. It was the only sales category to see a year-over-year increase in the cash sales share, CoreLogic said. Resales had the next highest cash sales share at 30.8 percent, followed by short sales at 28.7 percent and newly constructed homes, 15.6 percent.
The percentage of real estate-owned sales – generally homes being sold out of foreclosure – that were all-cash transactions remained high, but these transactions made up only 6 percent of all sales in June. In January 2011 when cash sales share reached its peak, real estate-owned sales comprised 23.8 percent of total home sales.

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