Call it the summer of the cash sale. All-cash home purchases skyrocketed during the summer months of 2013, with their share of total sales growing by more than 40 percent from the beginning of June to the end of August, amid sustained appetite from investors, a recent spike in interest rates and tight inventory.
Cash purchases accounted for 45 percent of sales in August, up from the 2013 trough of 32 percent seen in April and May, according to RealtyTrac data provided exclusively to Inman News. RealtyTrac That indicates that the market share of cash sales has increased 41 percent in just the last three months.
The recent meteoric rise in cash sales’ market share hit its fastest clip yet in August, with cash purchases’ share of total sales jumping 6 percentage points month over month to 45 percent. That’s the highest level that RealtyTrac has recorded since March 2012, right around when home prices hit their post-meltdown low.
Looking back a year, cash sales’ market share was up a whopping 50 percent in August, RealtyTrac said.