Investors made their play in the years after the real estate bubble collapsed pushing huge volumes of distressed housing on to the market.
Cash sales generated to a great degree from investors reallocating funds, are settling down as the real estate market heads toward a normal cycle.
Real estate data and analytics firm CoreLogic reported cash sales are on course to account for one in four home sales by mid-2018.
CoreLogic reported cash sales made up 37.9 percent of total home sales nationally in February, declining from 40.6 percent a year earlier. The Irvine, Calif., firm said year-over-year share of cash sales has dipped 26 straight months, dating back to January 2013. Month over month, the cash sales share fell by 1 percentage point.
In Oregon, February cash deals made up 29 percent of housing transactions. In California, 28 percent of the deals were for cash and in Washington 27 percent. However, in Idaho, the figure was 44 percent.
Core Logic said cash sales share peak January 2011, making up 46.5 percent of home sales nationally. Historically, cash deals accounted for approximately 25 percent of sales. At the same rate as reported in February, the trend line would be the same prior to the bubble in three years.