CoreLogic reports that 30% of May 2016 home sales were paid for in cash, which is both a 1.7% month-over-month decrease from April 2016 and a 2.5% year-over-year decrease from May 2015.
2016’s current cash sale rates make it the slowest start to a year since 2008, according to HousingWire’s Kelsey Ramírez. Cash sales were at their highest in January 2011, at 46.6% of total home sales. Before the housing crisis, this rate averaged at 25%, and at the current rate of decrease Ramírez estimates that cash sales would return to pre-crisis levels by 2018.
Real estate-owned sales had the largest share of cash sales in May, coming in at 56.6%. Resales were next with 29.8%, followed by short sales at 27.9% and newly constructed homes at 14.6%.