Of total home sales in November 2015, the percentage of cash sales dipped slightly (0.7 percentage points) year-over year, but rose 2.5 percentage points when compared with October 2015, reports Molly Boesel of CoreLogic.
Overall, cash sales accounted for 36.4% of total home sales in November 2015 – a month where the cash sale share typically increases. But due to the seasonality in the housing market, cash sales share comparisons should primarily be made on a year-over-year basis.
The November 2015 year-over-year decrease in cash sales share was the lowest in nearly three years. From January 2013 until October 2015 decreases in the cash sales share averaged 2.7 percentage points, ranging from -1.4 to -5.1 percentage points. The elevated cash share for November was most likely related to the new federal mortgage rules that took effect in October 2015 (TRID) as some mortgage deals were delayed while the industry adjusted to the new mortgage rules. These delays are not expected to carry forward in future months.