Cash sales made up 34.4% of total home sales in the United States in May 2014, the lowest share since May 2010, the latest data shows.
The figures from real estate company Core Logic, also show that the number of cash sales are down from 37.4% from the same month a year ago.
However, the firm pointed out that while the cash sales share also fell from the 36.9% reported in April 2014, cash sales share comparisons should be made on a year on year basis due to the seasonal nature of the housing market.
The share has fallen on a year on year basis each month since January 2013. Prior to the housing crisis, the cash sales share of total home sales averaged approximately 25% and the peak occurred in January 2011 when cash transactions made up 46.2% of total home sales.
Real estate owned (REO) sales had the largest cash sales share in May at 55.5%, followed by re-sales at 34%, short sales at 32.8% and newly constructed homes at 16.8%.
While the percentage of REO sales that were cash transactions remained high, REO transactions made up only 8.2% of total sales in May and therefore did not have a large influence on the overall cash sales share. In January 2011, when the cash sales share was at its peak, REO sales made up 24% of total sales.
Florida had the largest share of any state at 53.4%, followed by New York at 50.3%, Alabama at 48.9%, West Virginia at 48.3% and South Dakota at 46.3%.
Of the nation’s largest 100 Core Based Statistical Areas (CBSAs) measured by population, Nassau County-Suffolk County, New York, had the highest share of cash sales at 66.4% followed by Cape Coral-Fort Myers, Florida, at 64%, West Palm Beach-Boca Raton-Delray Beach, Florida, at 62.8%, North Port-Sarasota-Bradenton, Florida, at 62.7% and Detroit-Livonia-Dearborn, Michigan, at 61.1%.
This article was republished with permission from Property Wire.