According to CoreLogic, cash sales accounted for 31 percent of all home sales in August. That’s 1.5 percent below August of 2015, and it’s zeroing in on pre-crash norms of around 25 percent. Meanwhile, distressed sales accounted for 7.3 percent of all home sales and REO sales accounted for 4.6 percent‒‒their lowest point since 2007.
August’s sales figures are a further erosion of the share of houses bought with cash. Cash sales hit their peak six years ago and are expected to return to the 25 percent mark by mid-2019, CoreLogic reported.
Distressed sales hit their peak in 2009, when they made up a third of all U.S. sales. If the current year-over-year decrease in the distressed sales share continues, CoreLogic reported, it will reach the “normal” 2-percent mark in mid-2018.
At nearly 59 percent, REO sales had the largest cash sales share in August. Resales had the next highest cash sales share at 31 percent, followed by short sales at 29 percent. Newly constructed homes at 15.6 percent.
“While the percentage of REO sales within the all-cash category remained high, REO transactions have declined since peaking in January 2011,” the report stated. “REO sales made up 4.6 percent and short sales made up 2.7 percent [of home sales] in August.”
All but eight states recorded lower distressed sales shares since last year. Maryland had the largest share, with 19 percent, followed closely by Connecticut, with 18.5 percent, and Michigan with nearly 18 percent. New Jersey and Illinois each posted more than 15 percent distressed sales.
North Dakota, with 2.6 percent distressed sales, had the smallest share. Only North Dakota and the District of Columbia are close to their pre-crisis levels, each within one percentage point.