Home cash sales fall in July in Prov. metro

CORELOGIC said cash sales fell to 21.3 percent of the total in July in the Providence-Warwick-Fall River metropolitan area, a 6.2 percentage point decrease from July 2015. / COURTESY CORELOGIC
CORELOGIC said cash sales fell to 21.3 percent of the total in July in the Providence-Warwick-Fall River metropolitan area, a 6.2 percentage point decrease from July 2015. / COURTESY CORELOGIC

PROVIDENCE – Cash sales of homes fell to 21.3 percent of the total in July in the Providence-Warwick-Fall River metropolitan area, a 6.2 percentage point decrease from July 2015, CoreLogic said Wednesday.
The cash sales share in the Providence metro was lower than the national rate of 29.7 percent, which also fell over the year by 1.9 percentage points.
The cash sales share peaked nationwide in January 2011, when cash transactions accounted for 46.6 percent of total home sales nationally. However, before the housing crisis, the cash sales share of total home sales averaged approximately 25 percent. If the cash sales share continues to fall at the same rate it did in July 2016, the share should reach 25 percent by mid-2018, CoreLogic said.

Nationwide, real estate-owned sales had the largest cash sales share in July at 57.6 percent. Resales had the next highest cash sales share at 29.4 percent, followed by short sales at 28.1 percent and newly constructed homes at 15 percent.

Of the total sales in July, distressed sales accounted for 7.2 percent, real estate-owned sales accounted for 4.3 percent and short sales made up 2.9 percent.

The distressed sales share of 7.2 percent in July was the lowest distressed sales share since September 2007. During the peak in January 2009, distressed sales totaled 32.4 percent of all sales, with REO sales representing 27.9 percent of that share. Pre-housing crisis, the share of distressed sales was approximately 2 percent. If the current year-over-year decrease in the distressed sales share continues, the share will hit the 2 percent mark in mid-2018, CoreLogic said.

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New York had the largest cash sales share of any state at 44.6 percent, followed by Alabama (43.6 percent), Florida (39.6 percent), New Jersey (37.3 percent) and Indiana (37 percent).

In addition, all but eight states had lower distressed sales shares in July compared with July 2015, with Maryland having the largest share at 19.4 percent, followed by Connecticut at 18.6 percent. North Dakota had the smallest distressed sales share at 2.5 percent.

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