CoreLogic released its April cash sales report today, and as has been the trend all year, cash sales declined year-over-year, bringing national levels closer to the pre-crisis baseline of around a 25 percent market share.
In April, cash sales accounted for 33.7 percent of total home sales. The decrease from 37.4 percent in April 2014 is the 28th consecutive year-over-year decline in cash sales. Since the cash sales peak in Jan. 2011, when market share reached heights of 46.5 percent, a shift in market dynamics has allowed more first-time and traditionally financed buyers to enter and re-enter, leveling price appreciation and dissuading all cash investors to search for quick returns elsewhere.
Researchers with CoreLogic expressed optimism in cash sales maintaining their current rate of decline. They said if declines continue, cash sales would fall to 25 percent by mid-2017.
In Illinois, where cash sales represent a 30 percent market share statewide, improved building, swelling sales and sustained affordability have helped cultivate Chicago into a premier American market. The city’s new market is less dependent on cash and more reliant on traditional financing, as cash sales share of total sales dropped 3.8 percentage points year-over-year to 33.4 percent, pushing it below the national level.