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REO Properties Net Largest Share of Cash Sales

CoreLogic REO Cash SalesREO sales posted the largest residential cash home sales share in November 2014 with more than 60 percent, according to CoreLogic's new cash sales data released on Wednesday.

In November 2014, 61.1 percent of all REO properties sold were cash sales, according to CoreLogic. Re-sales had the next highest share at 35.2 percent, followed by short sales at 32.7 percent. About 16.3 percent of newly constructed home sales were cash sales in November, CoreLogic reported.

While the percentage of REO properties that were cash sales was high for November, REO sales accounted for just 10 percent of cash sales during the month – less than half of the peak percentage of 23.9 percent achieved in January 2011 at the height of the foreclosure wave.

Overall cash sales continued their year-over-year decline in November despite inching upward from October, according to CoreLogic. Cash sales made up 36.1 percent of total home sales in November, down from 38.8 percent a year prior. The drop marks the 23rd straight month of year-over-year declines.

Compared to October, the cash sales share was up about half a percentage point, "as is typical for the fall and winter months," said Molly Boesel, senior economist at CoreLogic. Due to the housing market's seasonality, Boesel says cash sales share comparisons are more revealing on a year-over-year basis.

Despite continually falling for nearly two straight years, the share of cash sales still remains elevated from their pre-crisis norm by more than 10 percentage points. In its last estimate, CoreLogic predicted the cash sales share would decline back to those levels in 2017.

About Author: Brian Honea

Brian Honea's writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master's degree from Amberton University in Garland.

About Author: Tory Barringer

Tory Barringer began his journalism career in early 2011, working as a writer for the University of Texas at Arlington's student newspaper before joining the DS News team in 2012. In addition to contributing to DSNews.com, he is also the online editor for DS News' sister publication, MReport, which focuses on mortgage banking news.
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