All-cash transactions in the U.S. home market have hit a record-low level, accounting for 29.3% of total home sales in June, according to the California-based data firm CoreLogic.
On a year-over-year basis, cash sales in June declined 2.5 percentage points . And this is the first time the figure stood below 30% for a single month since late 2007. Plus, cash sales fell by 0.9 percentage points from May to June.
The percentage of cash sales peaked in January 2011, when cash transactions accounted for 46.6% of total home sales nationally. Prior to the housing crisis, the percentage of total home sales that were paid in cash averaged approximately 25%, according to CoreLogic.
Cash sales are declining partly because "a reduction in foreclosure activity which is generally a cash-based investor transaction," said Jonathan Miller, the chief executive of appraisal firm Miller Samuel.
Easier access to financing has also helped diminish all-cash transactions. "We are also seeing some easing in credit conditions likely influenced by improving household income," Mr. Miller added. He is not involved in CoreLogic's housing data.
| Top 5 States with Largest Cash Sales | |
| State | Cash sales share |
| New York | 45.3% |
| Alabama | 44.6% |
| Florida | 40.6% |
| Oklahoma | 39% |
| Indiana | 36% |
| Source:CoreLogic |
New York had the largest share of cash sales of any state at 45.3%, followed by Alabama (44.6%) and Florida (40.6%), according to CoreLogic data released Tuesday.
CoreLogic projects that the cash sales share should slip to 25% by mid-2018, if it continues to fall at the same rate it did in June 2016.
Write to Fang Block at fang.block@dowjones.com