ATTOM Data Solutions’ First Quarter of 2017 United States Home Sales Report has conveyed that homeowners who sold during the first quarter of this year had an average price gain of $44,000 since purchase – an average 24 percent return on the purchase price, and the highest average price gain for home sellers in terms of both dollars and percent returns since the third quarter of 2007.
The report also indicates that homeowners who sold in the first quarter had owned an average of 7.97 years, representing a slight decrease from a record-high average homeownership duration of 8.00 years in the fourth quarter of 2016 but still higher than the 7.68 years in the first quarter of 2016.
Before the great recession, homeownership averaged a total of 4.26 years across the United States.
“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 homebuyers.”
“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 and Tampa,” Blomquist says. “Sky-high potential price gains may be finally prompting more homeowners to sell.”
The earnings potential is encouraging for those who have been holding off on selling their home. This increase in prices may very well represent the motivation needed by homeowners to take the steps to put their homes on the market.