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New York

Most U.S. home purchases made with cash: Report

More than half of all U.S. homes sold since early 2012 were all-cash sales, according to Goldman Sachs Group data cited by the Wall Street Journal.

The quantity of sales handled with cash instead of mortgages jumped by more than 30 percentage points over the past seven years, a more than two-fold increase. These sales comprised about 20 percent of all homes sold before the housing market crashed.

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The rise in all-cash deals clarifies why home sales have surged since 2011, in spite of slimmer increases in new mortgage activity, the Journal said.

Around 44 cents of every dollar of homes sold right now is being financed, a drop from 67 cents during the housing crisis, the Goldman report showed. Purchase-loan volumes are expected to rise to around $750 billion next year and to $1.1 trillion by 2016, the report said. [WSJ] – Mark Maurer

 

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Goldman SachsMortgages