Housing Cash Sale Shares returned to levels typical of the rest of 2015 after a brief blip upward during November, according to recent reports from CoreLogic. The financial services company indicated this week that the percentage of homes that were bought with cash was down to 33.4 percent, which ended 2015 with 33.9 percent of home sales being done with cash.
The drop during the last month of the year marked a 2.8 percentage fall from November. That month was exceptional in its 36.4 percent Cash Sales Share number. Many analysts suggested that the higher rate was the result of the recently implemented TRID disclosure rules, which then fell back down to a more expected level during December.
That said, the 2.8 percentage point drop from November to December isn’t as dramatic as it seems, in the grand scheme of things. Rates were falling by an average of 2.7 percent a month across all of 2015 prior to November.
The final numbers for December were 3.3 percent lower than those of the same period during 2014. All told, that makes 2015 the lowest year in terms of Cash Sale Shares since 2008, which—of course—was marked by the onset of the housing crisis. The highest monthly percent for the nation during the time in-between was January of 2011, where it reached 46.6 percent.
Cash Sales for homes were most popular along the Gulf, where Alabama led all states with a 50 percent Cash Sale Share, followed by closely by Florida and Mississippi, at 46 and 45 percent, respectively. Florida’s high rank was supplemented by hosting four of the five cities where home cash sales were most popular: West Palm Beach-Boca Raton, Miami, Fort Lauderdale and Sarasota. The highest percent share in the country was Detroit, which featured a Housing Cash Sales Share of 62.7 percent. That number, no doubt, brought the state of Michigan’s average up mightily, to 41 percent.
Transactions made with realtor-owned homes involved a Cash Sales Share of 59.2 percent, however those purchases only made up 7 percent of all home sales during the year.