Cash Buyers Pull Back and Financing Buyers Fill the Sales Gap

Cash purchases were 35% in May 2013 down 6 percent from May 2012 when they were 41%. The decrease in cash buyers was replaced by an increase in financing buyers. Conventional loan purchases were 40% in May 2013 compared to 36% in May 2012. And FHA and VA purchases in May 2013, were both up one percent over last year. As noted in our previous blog, in March 2013, for the first time since December 2008, more existing single family homes were purchased with conventional loans than with cash, ending 51 consecutive months of cash purchases reigning over conventional loan purchases.