the metropolitan of Syracuse, N.Y. had the lowest cash sales share at 11.0 percent.
Chicago, IL (PRWEB) July 29, 2015
Lenders like The Federal Savings Bank were thrilled to see the results for Core Logic’s latest report showing that cash sales hit a near 7 year low in April 2015.
Corelogic, a leading provider of consumer, financial and property information, reported in a July 16th release titled “Cash Sales Made Up 34 Percent of All Home Sales in April 2015” that cash sales were at the lowest recorded levels since September 2008. On a year-over-year basis, the percentage of cash sales to total sales has fallen for 28 consecutive months from January 2013 to April 2015. As a reminder, cash sales peaked at 46.5% in January 2011. Prior to the housing crisis the portion of cash sales averaged at just 25%.
The implications of this report are that demand is growing for financed purchases which means for mortgage applications/business for lenders like The Federal Savings Bank.
As the national unemployment remains low, The Federal Savings Bank thinks we will see continued reports from Corelogic showing a continuation of lower cash sales in the months ahead. As more American’s are employed, they qualify for home loans which enable individuals to bid and compete with cash offers knocking them out sometimes. Thus, as a larger number of mortgage applicants become approved, the lower we should see the proportion of cash sales.
Regionally, the states with the highest portion of cash sales in April 2015 were: Florida at 51.4%, Alabama at 48.5%, West Virginia at 48.3%, New York at 45.4%, and Kentucky at 41.4%. Corelogic continued by saying “Of the nation’s largest 100 Core Based Statistical Areas (CBSAs)2 measured by population, West Palm Beach-Boca Raton-Delray Beach, Fla. had the highest share of cash sales at 59.1 percent, followed by North Port-Sarasota-Bradenton, Fla. (58.5 percent), Cape Coral-Fort Myers, Fla. (58.1 percent), Detroit-Dearborn-Livonia, Mich. (58.0 percent) and Fort Lauderdale-Pompano Beach-Deerfield Beach, Fla. (56.9 percent).” Interestingly while New York State had a high number of cash sales, the metropolitan of Syracuse, N.Y. had the lowest cash sales share at 11.0 percent.
To learn about first-time home buyer programs that may assist in obtaining a desired property at an affordable price, contact the Federal Savings Bank, a veteran owned bank.