Housing
June Cash Home Sales Drop Below 30% for First Time Since 2007
Published:
Last Updated:
In June of 2016, cash sales comprised 29.3% of all home sales, down from 31.8% in June of 2015, marking the 42nd consecutive year-over-year monthly decline. Cash sales fell by 2.8 percentage points month over month in June.
Cash home sales reached a peak in January of 2011, when 46.6% 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%. If cash sales continue to fall at the December rate, the 25% rate should be achieved by mid-2018. June 2016 marks the first time since late 2007 that cash sales have dropped below 30% of all home sales.
June data was reported Tuesday by CoreLogic. For all of 2015, 33.9% of all home sales were cash transactions, the lowest total since 2008.
The five states where cash sales were highest in June were New York (45.3%), Alabama (44.6%), Florida (40.6%), Oklahoma (38.6%) and Indiana (35.7%). Sales include new construction, resales, real-estate owned (REO) and short sales.
Cash sales for REO properties accounted for 56.2% of all cash sales, while cash sales for resales and short sales accounted for about 28.9% and 27.7%, respectively. All-cash sales of new homes came in at 15.2% of all new home sales in June.
As a percentage of all sales, REOs accounted for 4.9% of total June 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 in June were:
- Detroit-Dearborn-Livonia, Michigan: 56.5%
- West Palm Beach-Boca Raton-Delray Beach, Florida: 49.3%
- Miami-Miami Beach-Kendall, Florida: 47.9%
- North Port-Sarasota-Bradenton, Florida: 47.7%
- Cape Coral-Fort Myers, Florida:46.1%
The metro area with the lowest percentage of cash sales was Syracuse, New York, with a cash sales share of 12.6% of all sales.
100 Million Americans Are Missing This Crucial Retirement Tool
The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.
Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.
A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.
Click here to learn how to get a quote in just a few minutes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.