From the Mecklenburg Times: Cash home sales down in Charlotte area Cash home sales down in Charlotte area
The share of homes that were bought with cash in the Charlotte area fell 2.6 percentage points in March from from March 2014, according to real estate information and analytics provider CoreLogic.
Cash sales in the Charlotte-Concord-Gastonia area accounted for 30.6 percent of all home sales in March, which was 2.3 percentage points lower than in February.
CoreLogic says that cash sales comparisons are more relevant on a year-over-year basis due to the seasonality of the housing market.
Nationally, the share of cash sales in March was 34.6 percent, down from 39 percent a year ago.
March marked the 27th consecutive month that the share of year-over-year cash sales declined nationally. Compared with February, cash sales in March were down 2.8 percentage points.
The share of cash sales prior to the recession averaged about 25 percent nationally, and peaked in January 2011 at 46.5 percent. CoreLogic reported that following current trends, the share of cash sales could drop back down to 25 percent by mid-2016.
The category with the highest rate of sales paid for with cash in February was foreclosures, at 56.2 percent. Re-sales had the second-highest, at 34.5 percent, followed by short sales at 31.6 percent and newly constructed home sales at 14.9 percent.
Although the share of foreclosure sales that were paid for with cash remained high, foreclosures accounted for only 8.4 percent of all home sales in March. In comparison, at the time cash sales peaked in January 2011, foreclosures made up 23.9 percent of all home sales.
Re-sales are responsible for about 80 percent of all home sales, according to CoreLogic, and have the biggest impact on the share of total cash sales.
In North Carolina, the share of homes paid for with cash in March was 34 percent, just above the national rate. Florida had the largest share of cash sales in the country at 51.8 percent; followed by Alabama at 50 percent; New York at 46.5 percent; New Mexico at 42.2 percent; and Michigan at 41.3 percent.
Of the nation’s 100 most-populated metro areas, four of the top five with the highest share of cash sales in March were in Florida. Philadelphia had the highest share of cash sales, at 60.7 percent.