The metropolitan area with the lowest share of cash sales was Syracuse, N.Y. at just 15%.
Chicago, IL (PRWEB) March 10, 2015
Lenders like Peoples Home Equity were pleased to read on Tuesday, March 9th that cash sales continue decline in share of home sales.
According to the latest Corelogic blog report, “Cash Transactions Made Up 35 Percent of All Home Sales in December 2014.” This figure was 2.8% below December 2013, marking the 24th consecutive month of declining year-over-year cash sales. On a month-over-month basis, cash sales also fell 0.5% from November 2014.
Regionally, “Alabama had the largest share of any state at 52.2 percent, followed by Florida (50.3 percent), New York (45.9 percent), Michigan (44.6 percent) and Idaho (42.9 percent).” Metropolitan areas that had the highest share of cash sales were dominantly in Florida. Corelogic stated “Detroit-Dearborn-Livonia, Mich. had the highest share of cash sales at 65.9 percent, followed by Miami-Miami Beach-Kendall, Fla. (58.3 percent), West Palm Beach-Boca Raton-Delray Beach, Fla. (57.2 percent), Fort Lauderdale-Pompano Beach-Deerfield Beach, Fla. (56.3 percent) and Cape Coral-Fort Myers, Fla.(55.6 percent).” The metropolitan area with the lowest share of cash sales was Syracuse, N.Y. at just 15%.
Peoples Home Equity expects cash sales to continue to decline until the historical norm is achieve. Corelogic underlines this opinion by stating “Prior to the housing crisis, the cash sales share of total home sales averaged approximately 25 percent. Should the cash sales share continue to fall at the same rate that it did in December 2014, the share should reach 25 percent in mid-2017.”
If the buyer is an investor, this news may sound disappointing as a declining number of cash sales is indicative of a more expensive market. However, financed buyer can be confident that the housing market continues to grow and competition with cash buyers has waned. Cash buyers typically have an edge over buyers with financing. However, with less cash buyers in the marketplace, those with financing have a better chance at purchasing the bargain priced home they desire.
If in need of a mortgage, contact a Peoples Home Equity loan officer today at: 262-563-4026