Sellers Average $61,000 at Point of Resale
Homeowners who sold their homes during the third quarter of 2018 walked away with just over $61,000 more than their original purchase price. That might sound like an incredible treasure lode, but many report the windfall is not quite what you might think at first. Although this sum is the highest average home-seller price gain since 2007 and marks a 32 percent return on the original purchase price, many of those sellers paid for that return by remaining in their homes more than 8.2 years and, furthermore, will face higher interest rates and home prices when they purchase their next residence.
“The hyper-competitive market that has emerged from the wreckage of the [housing] crisis is also keeping people in place,” observed ATTOM Data Solutions’ vice president Daren Blomquist. “Many homeowners have ample equity in their homes, but hesitate to list those homes because they are worried about finding a property to buy if they do sell,” he added. The longest tenure of homeowners selling in the U.S. during Q3 2018 was 13.41 years for homeowners in Norwich, Connecticut, but nearly half of the top 20 were located in counties in California.
Top Cities for Resale Gains
According to ATTOM Data, one city in the country, San Jose, California, posted three-digit gains for home-sellers during Q3 2018. Sellers reported 108.7 percent gains in San Jose, followed by 77.3 percent gains in San Francisco, 69.8 percent gains in Seattle, 67.9 percent gains in Santa Rosa, and 63.4 percent gains in Salem, Oregon.
Other Q3 milestones included about one in every 10 buyers using FHA loans to purchase single-family homes and condos, up from Q2 2018 but down from Q3 2017. Nearly 3 percent of all single-family home sales and condo sales in Q3 were made to institutional investors (any entity buying at least 10 properties in a calendar year), and that number has held relatively steady for about a year.
Do you think these national returns are indicative of a shift in the housing market? Will you be selling soon?