A new report from CoreLogic highlights improvements to the nation’s share of all cash sales. Unfortunately, it’s still high.
It’s a new housing market in 2015. Policies are shifting, new legislation is being written, and in an eddying whirl of change, the longterm implications are difficult to accurately project. However, one development buyers can appreciate, particularly those from the middle class, is the drastically thinning field of all cash buyers.
According to a new cash sales report from CoreLogic, December marked yet another month of declining cash sales. Down from 38.5 percent in Dec. 2013 to 35.5 percent, December’s drop represents 24 months of year-over-year declines. As the market progresses towards a firm middle ground where supply and demand are running along parallels, investors, who are most likely to make all cash offers, are leaving the market for more lucrative options – a move that will provide buyers dependent on financing a better opportunity to secure a quality home.
CoreLogic researchers estimate that at the current pace, national cash sales will reach pre-crisis levels (25 percent) by mid-2017.
While Corelogic doesn’t record data specific to Boston, it does track cash sales in Massachusetts, where levels have consistently remained near, at or below pre-crisis levels for month. In December, the state again recorded a 26 percent share of cash sales. That’s good news for Massachusetts’s middle class – and anyone dependent on financing. But bigger problems with affordability, particularly in Boston, are going to prove major hurdles in the longer road to sustainable recovery.