A new CoreLogic study details the fall of cash sale shares across the country.
A home is a good investment, but a normalizing market has somewhat thinned out the opportunities to make quick, high yield sales, and as a result, investors are leaving the market and taking with them the high share of all cash offers we became accustom to in the wake of the downturn, according to a new report from CoreLogic.
In January, cash sales accounted for 38.9 percent of total home sales, which, while still well above the 25 percent pre-crisis average, is down from 41.4 percent a year prior. The decline marks 25 months of consecutive decline, starting in Jan. 2013.
Considering the current rate of decline, CoreLogic researchers estimate the total share of cash sales should dip to 25 percent by mid-2018; of course, with market fluctuations being rapid and sometimes unpredictable, that timeline will likely change in the months to come.
For Massachusetts, the story is much the same as it has been: a consistently healthy cash sales share. At 25 percent, the state is way ahead of the curve in regaining footing lost during the crisis. However, despite promising cash sales stats, the state, and Boston, still face a litany of challenges, including high home prices and consistently low inventory levels.