There were fewer cash sales of homes in the Colorado Springs real estate market last year as the number of those sales continued a gradual decline, according to a recent report by CoreLogic.
The report found that cash sales accounted for 32.4 percent of total U.S. home sales in November 2016, down 4.5 percent from November 2015 and a 14.2-percent drop from their peak in January 2011.
“The cash sales share peaked in January 2011 when cash transactions accounted for 46.6 percent of total home sales nationally,” according to the report. “Prior to the housing crisis, the cash sales share of total home sales averaged approximately 25 percent. If the cash sales share continues to fall at the same rate it did in November 2016, the share should hit 25 percent by mid-2017.”
The report found that the Colorado Springs housing market saw a similar fate in November, when cash sales for the month were down 3.7 percent from November 2015 and sitting at around 15.3 percent of the market share — less than half the U.S. average.
In November, Colorado’s housing market saw 19 percent of its total volume represented by cash sales and was the state with the second-lowest market share of those sales. Cash sales in Maryland last November only accounted for 14 percent of total home sales for the month.
Meanwhile, New York had the highest market share (47 percent) of cash sales in November. It was followed by followed by Alabama (47.3 percent), Michigan (44.1 percent), Florida (42.4 percent) and Indiana (41 percent).
“Real estate owned sales had the largest cash sales share in November 2016 at 60.2 percent,” according to the report. “Resales had the next highest cash sales share at 32.3 percent, followed by short sales at 31.9 percent and newly constructed homes at 15.5 percent. While the percentage of REO sales within the all-cash category remained high, REO transactions have declined since peaking in January 2011.”