Cash Home Sales Highest in Michigan, West Virginia, Florida

Cash home sales reached a peak in January of 2011, when 46.4% of all home sales in the United States were sold for cash. That peak was nearly double the pre–housing crisis average of around 25%.

The five states where cash sales were highest in November were Michigan (54.4%), West Virginia (53.3%), Florida (51.4%), Alabama (50.7%) and South Dakota (45.5%). Sales include new construction, resales, real-estate owned (REO) and short sales, and the data were reported Wednesday by CoreLogic.

Cash sales for REO properties accounted for 61.1% of all cash sales, while cash sales for resales and short sales accounted for about 35.2% and 32.7%, respectively. All-cash sales of new homes came in at 16.3% of all new home sales.

As a percentage of all sales, REOs accounted for 10% of total November real-estate sales. In January 2011, REO sales accounted for nearly 24% of all sales.

Of the nation’s 100 largest metropolitan areas, the five core-based statistical areas with the greatest percentage of cash sales are:

1. Detroit-Dearborn-Livonia, Mich.: 63.2%
2. Miami-Miami Beach-Kendall, Fla.: 58.2%
3. West Palm Beach-Boca Raton-Delray Beach, Fla.: 57.3%
4. Philadelphia, Penn.: 55.9%
5. Fort Lauderdale-Pompano Beach-Deerfield Beach, Fla.: 55.7%

The metro area with the lowest percentage of cash sales was Washington-Arlington-Alexandria, D.C.-Va. at 15.8%.

Cash sales ticked up slightly month-over-month in November, which CoreLogic notes is typical of the fall and winter months.

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