According to the National Association of HomeBuilders’ study of the U.S. Census Bureau’s Quarterly Sales by Price and Financing more homes were purchased by cash in the third quarter of 2022. This is the first time a cash sale has beat out an FHA loan since 2007. The share of cash purchases climbed 9.5% to a 20-year high which amounted to 14,000 sales.
New home sales through the Federal Housing Administration (FHA) came in only at 11,000 sales which was 7.5% of the total sales in the third quarter of 2022. The share has dropped close to two-thirds since spring of 2020. Conventional loans made up 77.6% of new home sales in the third quarter of 2020 while VA loans declined to 5.4%.
The national median sales price of a new home was $454,900 in the second quarter of 2022. This was a 5% increase but there is still a big difference in the type of financing percentages. New home sales with all-cash increased 27.3% since the beginning of while FHA-backed sales have decreased 7.6%. The median prices varied for new homes by the type of financing, conventional $503,200, FHA, $340,300, VA $432,200 and cash $494,200.