Monday, March 28, 2016

No More Cash on the Barrelhead

There has been continuous growth in home sales in recent years, in almost every category. But one type of home sale has been dropping: all-cash sales. Cash sales accounted for about 34 percent of all home sales last year, according to CoreLogic, the lowest figure for that category since 2008.

It wasn't so long ago that nearly half of all home sales were being transacted in all cash. The record was set in January 2011, when 46.6 of all home sales were done in cash. A great deal of those were foreclosed properties bought up on the cheap by investors.  

The current status is still above historic norms for this category. Prior to the bursting of the housing bubble, all-case sales used to make up about 25 percent of the total housing market.

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