Home purchases made in all-cash transactions have slowly inched toward pre-recession levels since 2011 and new data shows that at the current rate of decline, the current figures could return to normalcy by mid-2018. According to real estate data tracking firm CoreLogic, cash sales accounted for 29.7 percent of total home sales in July, down 1.9 percent from the previous year.
Cash sales reached their highest level in January 2011 when 46.6 percent of homes were purchased without a mortgage. This was a staggering increase from prior to the Great Recession when they accounted for just a quarter of all sales. According to CoreLogic, if cash sales continue their toward trajectory, the summer of 2018 could see a return to 25 percent.
The volume of purchases made in cash are typically lower in California than the national average – hovering near 22 percent in July. All-cash buyers tend to pay less than listing prices, as sellers appreciate the appeal of cash: faster closing times and less financing hurdles.
Meanwhile, conforming no-point 30-year fixed rates averaging 3.375 percent while the 15-year rate is near 2.75 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.