U.S. Home Sellers Realized Average Price Gain Of $57,500 in First Quarter Of 2019

Homeowners who sold in the first quarter realized an average price gain of $57,500 since purchase, representing an average 31.5 percent return on the purchase price, according to a report from property database curator ATTOM Data Solutions.

Meanwhile, the report also shows that homeowners who sold in the first quarter had owned an average of 8.05 years, down slightly from a record-high average homeownership tenure of 8.17 years in Q4 2018 but still up from 7.75 years in Q1 2018.

Homeownership tenure averaged 4.21 years nationwide between Q1 2000 and Q3 2007, prior to the Great Recession.

Home Prices Still Below Pre-Recession Peak in Many Areas

Median home prices in 49 of the 123 metro areas analyzed in the report (40 percent) were still below pre-recession peaks in the first quarter of 2019, led by York-Hanover, Pennsylvania (56 percent below); Trenton, New Jersey (35 percent below); Atlantic City, New Jersey (32 percent below); Bridgeport-Stamford-Norwalk, Connecticut (28 percent below); and New Haven, Connecticut (22 percent below).

Those major metros with at least 1 million people and with Q1 2019 median home prices at least 10 percent below pre-recession peaks were Hartford, Connecticut (17 percent below); Philadelphia, Pennsylvania (15 percent below); Chicago, Illinois (14 percent below); Baltimore, Maryland (13 percent below); Miami, Florida (12 percent below); Washington, D.C.(10 percent below); and Birmingham, Alabama (10 percent below).

Average Home Seller Gains Down from Previous Quarter, Up from Year Ago

U.S. homeowners who sold in the first quarter of 2019 realized an average home price gain since purchase of $57,500, down from an average gain of $60,000 in Q4 2018 but up from an average gain of $56,733 in Q1 2018.

The average home seller gain of $57,500 in Q1 2019 represented an average 31.5 percent return as a percentage of original purchase price.

Among 123 metropolitan statistical areas analyzed in the report, those with the highest average home seller returns in Q1 2019 were San Jose, California (84.1 percent); San Francisco, California (70.9 percent); Seattle, Washington (63.1 percent); Modesto, California (59.7 percent); and Salt Lake City, Utah (56.5 percent).

Cash Sales Share Decrease Annually 

All-cash sales represented 28.0 percent of all single family and condo sales in Q1 2019, up from 27.7 percent of all sales in the previous quarter, but down from 28.9 percent of all sales in Q1 2018.

Among major metropolitan areas with a population of at least 1 million, those with the highest share of all-cash sales in Q1 2019 were; Miami (44.6 percent); Tampa-St. Petersburg, Florida (40.7 percent); Birmingham, Alabama (40.6 percent); Detroit (40.1 percent); and Memphis, Tennessee (38.9 percent).

Copyright Today’s Credit Unions