The percentage of cash sales to purchase homes has been declining in the past four years. Cash sales made up nearly 39% of total sales in January 2015, down 41.4% since January 2014. Since January 2013, the year-over-year percentage has declined each month as January 2015 was the 25th consecutive month of declines. Back in January 2011, cash sales peaked at 46.5% of total home sales as compared to the 25% prior to the housing bust in 2008.
The Mortgage Bankers Association reported this week that mortgage applications for new home purchases rose by 17% in March from February due to a rosier job market, a slight increase in wages along with continued low home loan rates. In the first quarter of 2015, applications for new home purchases were up 20% compared to the first quarter of 2014. “Continued strength in builder applications raises the likelihood that housing starts will be strong over the next few months,” said Lynn Fisher, MBA’s vice president of research and economics.
In consumer news, the highly anticipated Apple Watch debuted today in Apple stores around the globe. The watch is available for pre-order online and to try out in stores, but not to take home. The new gizmo won’t be available until April 24, where eager Apple fans will be able to buy it online or by appointment at stores. The Apple Watch sport will have a ticket price starting at $349 with the standard version at a price tag of $549. For those higher-end consumers, the watch comes in gold with a price range of $10,000 up to $17,000!
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