The City of Chicago is continuing to see cash sales decline in terms of real estate. In fact, just released cash sales data from the month of June shows the trend could continue, and predicts what that means if it continues its downward trend for the next couple of years.
The data comes from CoreLogic, a leading analytics, global property information and data solutions provider that helps give some insight into the nation’s real estate economy. The company points to national statistics, showing that cash sales made up about 31.3 percent of all home sales for the month of June. That’s down from the same period of time last year, which saw cash sales at about 33.9 percent.
The latest numbers reflect a similar story that’s been going on for more than four years when it comes to a decrease of cash sales in real estate. In fact, according to CoreLogic, cash sales peaked in January 2011 with cash sale transactions soaring to a 46.5 percent total market share.
Researchers predict that should the downward spiral continue at the rate it has already, though, the market share could fall by mid 2017 to just 25 percent. That amount marks a pre-crisis standard. Whether it does, or not, depends greatly on the performance of the nation’s sub markets.
When specifically looking at Chicago, cash sales have declined consistently over the years. In June, the city saw a drop in cash sales of 5 percentage points compared year-over-year. That drop brought the rate to just 27.9 percent.