Cash purchases slow a bit


The share of all-cash home purchasesĀ in North Port-Sarasota-Bradenton was down in May over the same period last year and sits at 55.9 percent, a 7.2 percentage point decrease compared with May 2014, according to a report by Core Logic. But the cash sales share in North Port-Sarasota-Bradenton was higher than the 31.9 percent national rate.

Nationally, all-cash purchases (no mortgage financing) were down from 35.1 percent in May 2014. The year-over-year share has fallen each month since January 2013, making May 2015 the 29th consecutive month of declines. Month over month, the cash deals share fell by 1.7 percentage points in May 2015 compared with April 2015. Due to seasonality in the housing market, cash-purchase share comparisons should be made on a year-over-year basis.

The cash-purchase share peaked in January 2011, when they made up 46.5 percent of total home sales nationally. Prior to the housing crisis, the share of total home transactions averaged approximately 25 percent. If the cash-purchase share continues to fall at the same rate it did in May 2015, the share should hit 25 percent by mid-2017, Core Logic predicts.

Harold Bubil

Recipient of the 2015 Bob Graham Architectural Awareness Award from the American Institute of Architects/Florida-Caribbean, Harold Bubil is real estate editor of the Herald-Tribune Media Group. Born in Newport, R.I., his family moved to Sarasota in 1958. Harold graduated from Sarasota High School in 1970 and the University of Florida in 1974 with a degree in journalism. For the Herald-Tribune, he writes and edits stories about residential real estate, architecture, green building and local development history. He also is a photographer and public speaker. Contact him via email, or at (941) 361-4805.
Last modified: August 19, 2015
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