Syracuse, N.Y., cash sales represented only 14.1% of total sales.
Chicago, IL (PRWEB) November 12, 2014
Lenders like P eoples Home Equity were pleased to read a report from Corelogic, a real estate data Analytics company, that the percentage of cash sales in the housing market is on the decline. This news is great for first-time home buyers as it means less competition with investors.
According to the November 11th report titled “Cash Sales Made Up 34 Percent of Total Home Sales in August 2014” Corelogic states that “Cash sales made up 33.8 percent of total home sales in August 2014, down from 36.4 percent in August 2013.” On a month over month basis cash sales did increase, but they have also increased in August “for 14 out of the past 15 years” thus Peoples Home Equity agrees with Corelogic that “cash sales share comparisons should be made on a year-over-year basis due to the seasonal nature of the housing market.”
As a reference point, “Prior to the housing crisis, the cash sales share of total home sales averaged approximately 25 percent. The peak occurred in January 2011 when cash transactions made up 46.3 percent of total home sales.” At the current level of 33.8%, the market is closer to the average than the peak.
By home type, real estate owned sales made of 56.9% of cash sales, re-sales made up 33.4%, short sales made up 31.8%, and new homes made up just 16.5%. One should note that while the percentage of REO cash sale was high, they make up only 7.2% of total home sales in America.
By state, “Florida had the largest share of any state at 49.8 percent, followed by Alabama (48.9 percent), West Virginia (45 percent), New York (44.4 percent) and Delaware (44 percent).” As for the lowest specific area of cash sales, Syracuse, N.Y., cash sales represented only 14.1% of total sales.
While cash sales are on the decline, first-time home buyers should remain weary of cash buyers and prepare themselves by being able to bid on a property first with the appropriate home loan pre-approval. In addition being pre-approved gives one the knowledge of how much they may borrow to filter their property search and/or in the event of the need to outbid a cash buyer.
Contact a Peoples Home Equity loan officer today at: 262-563-4026