Corelogic: Cash sales drop to 23% in Nov. in Prov. metro

PROVIDENCE – Cash sales slipped in the Providence-Warwick metropolitan area in November to 23.4 percent of total home sales, a 9.1 percentage point decrease compared with November 2014, CoreLogic said Friday.
The cash sales share in Providence-Warwick was lower than the 36.4 percent national rate – that rate also declined over the year by 0.7 percentage points.
CoreLogic said that the November 2015 year-over-year decrease in cash sales nationally was the lowest in nearly three years.
The cash sales share peaked in January 2011, when cash transactions accounted for nearly 47 percent of total home sales nationally. Before the housing crisis, the cash sales share of total home sales averaged approximately 25 percent.
Nationwide, real estate-owned sales had the largest cash sales share in November 2015 at 63.2 percent. Resales had the next highest cash sales share at 35.7 percent, followed by short sales at 34.3 percent and newly constructed homes at 16.7 percent.
REO transactions accounted for only 8.7 percent of all sales in November. When the cash sales share was at its peak in January 2011, REO sales accounted for nearly 24 percent of total home sales. Resales typically make up the majority of home sales (approximately 78 percent in November), making the biggest impact on the total cash sales share.
In November, Michigan had the largest cash sales share of any state at 53 percent, followed by Alabama, 51.4 percent; Florida, 50.2 percent; Kentucky, 49.1 percent; and New York, 47 percent.
Of the largest 100 core-based statistical areas measured by population, Detroit had the highest cash sales share at 61.5 percent, followed by West Palm Beach-Boca Raton-Delray Beach, Fla., 53.4 percent; Miami-Miami Beach-Kendall, Fla., 52.5 percent; Fort Lauderdale-Pompano Beach-Deerfield Beach, Fla., 50.4 percent; and North Port-Sarasota-Bradenton, Fla., 50.1 percent. Syracuse, N.Y., had the lowest cash sales share at 13.1 percent, CoreLogic said.

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