Cash sales made up about 30 percent of all single-family and condo sales in the first quarter of this year, according to ATTOM Data Solutions' First Quarter 2017 U.S. Home Sales Report. That is well below their peak of 44.7 percent in the first quarter of 2011 but higher than the prerecession average of 20.4 percent from 2000 to 2007.
"With a stronger market and overall sales increasing, we are seeing a decrease in foreclosure sales across the markets we serve, as well as a decrease in institutional investors purchasing homes," says Matthew Watercutter, senior regional vice president and broker of record for HER, REALTORS®, in Dayton, Ohio. "With the stronger market and availability of money from institutional lenders such as mortgage companies and credit unions, we are seeing a decrease in cash purchases, as more properties are being sold to owner occupants and fewer to investors."
Out of 150 metro areas with populations of at least 200,000, the highest share of cash sales were in these cities, according to ATTOM Data Solutions' analysis:
- Salisbury, Md.: 61.2%
- Raleigh, N.C.: 60.6%
- Naples, Fla.: 56.6%
- Binghamton, N.Y.: 54.3%
- Spartanburg, S.C.: 53.3%
Fifty-one of the 150 metros analyzed posted a year-over-year increase in the share of all-cash sales. Some of the markets seeing the largest year-over-year increases were New York; San Francisco; Riverside-San Bernardino, Calif.; Seattle; and Minneapolis-St. Paul, Minn.
Source: RealtyTrac
