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CPBJ Extra Blog

Cash is king again

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It's raining cash.

No, I'm serious. Just look at residential sales lately.

All-cash purchases made up 45 percent of U.S. home sales in August. That was up from 39 percent in July and 30 percent in August 2012, according to California-based RealtyTrac Inc.

Is it the rise in interest rates? Yeah, that's related — even more so if the Federal Reserve winds down its bond-buying program.

Are there more institutional investors? Yeah, there is a little more of that. Market share was about 10 percent nationally in August, up from 9 percent in July.

Foreclosure sales? Always a factor, since they are all-cash purchases.

In Pennsylvania, all-cash sales accounted for 43 percent of residential sales in August. That was up from 36 percent in July and 38 percent a year ago, according to RealtyTrac.

In the Harrisburg-Carlisle area, it was 56 percent in August. Institutional investors made up 8 percent.

In Lancaster County, all-cash sales accounted for just 29 percent in August.

August also was the 17th consecutive month in which median prices nationwide increased on an annual basis. It was $175,000 for the month.

So, where do we go from here? Will cash remain king? I would say so.

Jason Scott

Jason Scott

Jason Scott covers state government, real estate and construction, media and marketing, and Dauphin County. Have a tip or question for him? Email him at jasons@cpbj.com. Follow him on Twitter, @JScottJournal. Circle Jason Scott on .

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