The share of home buyers using all-cash to pay for their real estate transactions dropped to the lowest level since November 2009, according to a new report by RealtyTrac. Nearly 25 percent of all single-family home and condo sales in May were all-cash purchases, down from 30 percent a year ago.
The percentage of cash sales is nearing a long-term average that goes back to January 2000 of 24.8 percent. Cash sales are below the peak of 42.2 percent in February 2011.
As such, housing markets are transitioning from an “investor-driven, cash-is-king market to one more dependent on traditional buyers,” says Daren Blomquist, at RealtyTrac.
Source: “All-Cash Share of U.S. Home Purchases in May Drops to Lowest Level Since November 2009,” RealtyTrac (July 1, 2015)