The share of home buyers using all-cash to pay for their real estate transactions dropped to the lowest level since November 2009, according to a new report by RealtyTrac. Nearly 25 percent of all single-family home and condo sales in May were all-cash purchases, down from 30 percent a year ago.
The percentage of cash sales is nearing a long-term average that goes back to January 2000 of 24.8 percent. Cash sales are also well-below the peak of 42.2 percent reached in February 2011.
The share of institutional investors — those who purchase at least 10 properties in a year and who often pay all-cash — is plunging.
As such, housing markets are transitioning from an “investor-driven, cash-is-king market to one more dependent on traditional buyers,” says Daren Blomquist, vice president at RealtyTrac.
