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US Home Sales Report: Cash Sales In Michigan Dominate Charts, New York Lowest

Posted by Guenee Abragan on Mar 02, 2016 06:10 AM EST
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American Red Cross volunteer John Lohrstorfer walks down Maryland St. on Flint's north side to deliver water and filters to homes on January 21, 2016 in Flint, Michigan. The Red Cross is supporting state and county efforts to bring water to every household in the city. (Photo : Sarah Rice / Getty Images)

CoreLogic reported that 36.4 percent of the overall US home sales in November 2015 were made via the cash sales. The figure indicated a drop of 0.7 percent points from the previous 37.1 percent evaluation in November 2014.  

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On the basis of month over month return, the share in cash sales rose by 2.5 percent points in November 2015. Since cash sales shares usually rises up in November due to the time pattern in the housing market, comparisons must be done on an annual basis.

In January 2011, cash sales share reached the highest point when the cash transactions became responsible for the 46.6 percent of the overall home sales nationwide. Before the housing market went on crisis mode, cash sales share of overall home sales averaged to an estimate of 25 percent.   

The real estate-owned sales, on the other hand, indicated the biggest cash sales share at 63.2 percent in November 2015. The next highest cash sales share was at 35.7 percent consisting mostly of re-sales. Meanwhile, short sales took 64.3 percent and newly built homes was at 16.7 percent to complete the ranking.  

Although REO sales percentage with cash transactions was still high, the REO transactions have been responsible for just 8.7 percent of the total sales in November 2015, Biz Journals reported. When cash sales share reached its peak in January 2011, the REO sales showed 23.9 percent of the overall home sales. Resales usually account for most of home sales, thus have the largest effect on the overall share of cash sales. 

Out of the country's biggest 100 Core Based Statistical Areas gauged through a population, Detroit, Michigan was shown to have the highest share of cash sales at 61.5 percent. This was followed by the West Palm Beach Boca Raton Delray Beach, Florida at 53.4 percent; Miami-Miami Beach-Kendall, Florida at 52.5 percent; Fort Lauderdale-Pompano Beach-Deerfield Beach Florida at 50.4 percent; and North Port-Sarasota-Bradenton, Florida at 50.1 percent. Syracuse, New York indicated the lowest share of cash sale at 13.1 percent, World Property Journal reported.  

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