Cash sales in the U.S., historically driven by foreign and wealthy homebuyers, had their lowest start this year since 2008, according to a new report released Wednesday.
Home sales paid in cash accounted for 31.6% of all transactions in April 2016, a 2.8% decrease from the same month last year and 1.6% fewer than in March, CoreLogic reported. Between January and April, the share was 33.9%, the lowest start in eight years.
In the 12 months ending March 2016, 73% of non-resident foreigners paid for their homes in cash, according to a separate report by the National Association of Realtors released earlier this month. Canadians led this type of transactions with 73%, followed by Chinese nationals (71%) and British buyers (58%).
The NAR report also found that Florida is the No. 1 U.S. destination for foreign homebuyers, with 22% of all transactions. It is no coincidence, then, that Florida recorded the largest share of cash sales of any state, at 45.5%, according to CoreLogic’s data.
In New York, a major destination for wealthy buyers, cash sales represented 44.2% of purchases.
Both states saw cash sales decrease from March (47.5% and 45.9%, respectively) as a strong dollar and global uncertainty continued to hit international home sales, the CoreLogic data show.
In the year ending March 2016, foreign buyers purchased $102.6 billion worth of residential property, compared with $103.9 billion in the previous 12-month period, according to NAR.
Cash sales in the U.S. peaked in January 2011, when they accounted for 46.6% of deals nationwide. CoreLogic forecasts that if the share of cash sales continues to fall at the same rate it did in April, it will hit 25% by mid-2018, its level prior to the housing crisis.
States recording largest shares of cash sales in April 2016
More From Mansion Global:
Follow Mansion Global:Facebook | Twitter | Instagram | LinkedIn | Messenger
Write to us: firstname.lastname@example.org