Chicago, IL (PRWEB) May 13, 2014
As home sales data gets announced it’s important for prospective customers to know how much the market is split between financing and cash transactions. Peoples Home Equity found out on Tuesday May 13th from a Corelogic article that cash sales “made up 40.2 percent of total home sales in February 2014.” However, the number is declining which is positive for home buyers and constructive for the housing market.
Cash transactions peaked in January 2011 at 46.2% emphasizes how much the market still has to improve since cash transactions remain high at 40.2% as of February 2014. The good news is that cash sales among new construction and resold homes are declining to levels they were 10 years ago. The percentage of cash sales for resold homes in 2004 was roughly 28% whereas now it is 40.2% down from above 46.2% in 2011. One positive view is that cash sales for resold homes are 17% which is nearly what they used to be before 2008, this bodes well for the resold home market. Unfortunately, for REO sales cash transactions dominate at 58.5%
Looking at individual states, Florida had the highest percentage of cash sales at 59.8% while Alabama (55.3%) and West Virginia (52%) followed close behind. When looking at metropolitan areas, “Detroit-Livonia-Dearborn, Mich. had the highest share of cash sales at 68.1 percent, followed by Cape Coral-Fort Myers, Fla. (64.5 percent), West Palm Beach-Boca Raton-Delray Beach, Fla. (64.3 percent), Fort Lauderdale-Pompano Beach-Deerfield Beach, Fla. (63.8 percent) and Miami-Miami Beach-Kendall, Fla. (62.8 percent).” Peoples Home Equity found this information useful and hopes it readers may find some value in data. Peoples Home Equity has lending branches located in Michigan, if interested in securing a lower rate mortgage in the area, consider speaking with a Peoples Home Equity loan officer today at: 262-563-4026