Home Purchases: All-Cash Sales Soar to More Than 50%

Home Purchases: All-Cash Sales Soar to More Than 50%Over the past seven years that have seen a housing market meltdown and ongoing rebound, the share of all-cash home sales has more than doubled, increasing to more than half of all transactions so far this year and all of last year, according to an analysis by economists at Goldman Sachs Group
Whether that’s mostly investors overrunning the market, or a combination of that and other factors, is not discernible.
But it is a striking statistic and an indicator that mortgage origination volume doesn’t tell the whole story.
Before the housing crash, about 20 percent of all homes sold were all-cash sales.
The Goldman study analyzed home-sales data from the Census Bureau, the National Association of Realtors and mortgage-origination stats from the Mortgage Bankers Association and Lender Processing Services.
The Goldman report also finds that about 44 cents of every $1 of homes sold currently is being financed, compared to 67 cents before the crisis.
Purchase-mortgage origination volumes have fallen from around $1.5 trillion in 2005, when the housing market peaked, to around $500 billion in each of the last two years.

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