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35 ยป VISIT US ONLINE @ DSNEWS.COM ALL-CASH SALES SHARE CONTINUES YEAR-OVER- YEAR DECLINE e share of all-cash home sales continued its streak of annual declines in October but remained elevated compared to pre-crisis levels, according to data released in January. In a post on the company's blog, Core- Logic estimated cash transactions accounted for 35.5 percent of total home sales in Octo- ber 2014, down from 38.7 percent the year prior. e decline continued a downward trend started in January 2013, making Oc- tober the 22nd straight month to experience cash sales decline on an annual basis. Cash sales peaked in January 2011, when they made up 46.4 percent of total home sales. Prior to the housing crisis, cash share averaged about 25 percent. "At the current rate of year-over-year decrease, the cash sales share should be back to pre-crisis levels in 2017," estimated Molly Boesel, senior economist for CoreLogic. While cash sales share did tick up from September to October, CoreLogic said the increase "is typical for the fall and winter months." Due to seasonal influences on the housing market, the company said cash sales share comparisons are best made on a year- over-year basis. As is typical, REO sales accounted for the majority of cash sales in October, edging up slightly from September to a share of 58.7 percent. Because REO sales make up only a small share of total home sales (7.9 percent in October), Boesel noted those transactions "did not have a large influence on the overall cash sales share." Resales made up the second-biggest slice of all-cash transactions at 35 percent, followed closely by short sales at 33 percent. New home sales accounted for 16.8 percent of cash sales, meanwhile. State-wise, Delaware held on to its spot as the No. 1 state for cash sales, with 58.3 percent of home sales transacted in cash. Alabama ranked second with a share of 51.3 percent, while Florida moved down a slot from September at a share of 51.1 percent. New York (44.4 percent) and Michigan (43.1 percent) rounded out the top five. FED: ECONOMY GROWING AT "MODEST TO MODERATE" PACE AMID CONCERNS OVER OIL PRICES Economic growth continued at a "modest to moderate" pace through November and Decem- ber, though falling oil prices threaten to disrupt some areas in the coming months, according to reports collected by the Federal Reserve. In the latest Beige Book report released in mid-January, the Fed said contacts in most of its 12 districts expect faster growth in the year ahead, though some in the Dallas district are worried about a slowdown as the oil market suffers. While lower prices are bound to keep Americans happy at the gas pump, they could potentially be a problem for housing in oil- dependent states, including Texas, Oklahoma, and Louisiana. If the current decline impacts the local labor market (as the Dallas Fed indicated in its own Beige Book), it could be a weight on their housing health in the next few years. In the housing sector, the Fed reported little change for most districts, with both single- family home sales and construction flattening out. Sales were down somewhat on a yearly basis in Boston, Cleveland, Atlanta, Chicago, Minneapolis, Kansas City, and Dallas, while San Francisco posted a pickup. While existing- home sales fell annually in Philadelphia, contacts there are optimistic about pending home sales numbers, which improved year-over-year. On the homebuilding side, construction on new homes slowed slightly in the Cleveland, Atlanta, Chicago, Minneapolis, and Kansas City districts. Homebuilding increased in some areas of the San Francisco district. Overall, loan demand grew modestly, nudg- ing up in Richmond, Kansas City, and Dallas, with the Philadelphia district also reporting a "modest" increase in total loan volume. Credit quality also improved somewhat, with overall reductions in loan delinquencies. Credit standards were largely unchanged, though "several Districts commented that their contacts indicated that stiff competition for high-quality borrowers was leading to lower underwriting standards among lenders more generally," the Fed said.