The following was reported in the Today’s Headlines section of Realtor Magazine.
[Homeowners who sold in the first quarter realized an average price gain of $44,000 since purchase. That represents an average 24 percent of return on the purchase price, which is the highest average price gain for home sellers in terms of both dollars and percent returns since the third quarter of 2007, according to ATTOM Data Solutions’ First Quarter 2017 U.S. Home Sales Report.
“The first quarter of 2017 was the most profitable time to be a home seller in nearly a decade, and yet homeowners are continuing to stay put in their homes longer before selling,” says Daren Blomquist, senior vice president with ATTOM Data Solutions. “This counterintuitive combination is in part the result of the low inventory of move-up homes available for current homeowners, while also perpetuating the scarcity of starter homes available for first-time home buyers.”
Homeowners who sold in the first quarter had owned their home for an average of 7.97 years, the report showed. Between the first quarter of 2000 and third quarter of 2007, before the Great Recession, average homeownership tenure was 4.26 years.
Still, “there are some early signs this inventory logjam may be loosening up in some markets, with the average homeownership tenure down from a year ago in nine of the 66 markets we analyzed, including Memphis, Dallas, Boston, Portland [Ore.], and Tampa,” Blomquist says. “Sky-high potential price gains may be finally prompting more homeowners to sell.”}
There has been a lot of concern in the real estate industry if we are headed to another bubble. Some of the signs such as high prices are there however it’s interesting to note the length of time homeowners are holding on to their property, a little over 4 years before the crash to almost 8 years now. This increase is partially responsible for the overall lack of inventory in most markets. That keeps prices high and works against a bubble crash. However if the inventory starts to increase a correction could soon follow.
Author:Gary Benson Phone: 561-445-2331 Dated: April 28th 2017 Views: 81 About Gary: ...
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