While REO sales still had the largest share of all-cash home sales in December 2014, both the share of cash sales that are REO sales and the share of REO sales that are cash sales were down month-over-month, according to data released by CoreLogic on Monday. REO sales have historically had the largest cash sales share, as they did in December, when 58.4 percent of all REO sales were cash sales. This percentage was down slightly from November's total of 61.1 percent but still well above half.
Conversely, REO transactions accounted for 8.8 percent of all cash sales in December, down slightly from 10 percent that was reported in November. By comparison, at their peak, REO sales made up 23 point 9 percent of cash sales in January 2011. The percentage of short sales that were all cash sales held steady from November to December at 32.7 percent, and the percentage of newly-constructed home sales that were cash sales declined slightly month-over-month in December down to 15.6 percent.
Consumers were more optimistic toward the economy than they've been at any point in the last five years, according to Fannie Mae's February 2015 National Housing Survey released Monday. The percentage of respondents who said they believe the economy is on the right track increased by 3 percentage points since January's survey up to 47 percent, an all-time high since the survey began nearly five years ago. Also hitting an all-time high for Fannie Mae's housing survey was the percentage of respondents who said they believe it is easier to get a mortgage today, at 54 percent.