CoreLogic: Cash Leaves Houston, Homebuyers Rejoice

by James McClister

CoreLogic’s March cash sales report found cash purchases are falling dramatically all across the nation


The pool of real estate cash is shrinking as all-cash buyers continue leaving the market, making way for more traditionally financed buyers, particularly first-time buyers, among persisting, widespread inventory shortages, according to a March cash sales report from CoreLogic.

In March, cash sales fell about 5 percentage points year-over-year to 34.6 percent of total home sales nationally. While the drop is a positive note for the industry, it’s not all that surprising. March’s decline is the 27th consecutive month of year-over-year declines, which began Jan. 2013.

Since cash sale hit their peak share in Jan. 2011 at 46.5 percent, their significance in the national market has faded substantially. A large reason for the decline is the drop in foreclosed and distressed properties, which formerly gave investors ample crops of low hanging fruit to pick and flip, as well as a general exodus of all-cash and foreign investors, who’ve left for more immediate returns and less robust currencies.

Nationally, CoreLogic researchers expect cash sales share to hit pre-crisis levels of 25 percent by mid-2016. However, at the metro level, there is a great diversity among markets.

In the Bayou City, cash sales continued their descent into irrelevancy, droppingyear-over-year from 38 to 32.4 percent. Levels are now refreshingly close to the pre-crisis benchmark of 25 percent.

Statewide, March cash sales made up 30 percent of total sales.


Read More Related to This Post

Join the conversation

Oops! We could not locate your form.