CoreLogic analyst Molly Boesel clocks in with a monthly update on an important measure of housing's continued recovery from the clutches of Great Recession misery: the share of cash sales as a percentage of total house transactions.
What's evident as the market recovers is that institutions--which tended to account for a large percentage of cash transactions--and well-to-do individuals are playing less of a significant role in the continued trajectory of housing. Instead, individual households with plans to be owner-occupiers, more often than not whom have to rely on mortgage lending to land homeownership, are making headway into a larger and larger part of the total market of transactions. Boesel writes:
Cash sales made up 30.8 percent of total home sales in July 2015, down from 34.2 percent in July 2014. The year-over-year share has fallen each month since January 2013, and is at the lowest level in nine years. Month over month, the cash sales share fell by 0.5 percentage points in July 2015 compared with June 2015. Due to seasonality in the housing market, cash sales share comparisons should be made on a year-over-year basis.