Home Sellers Net Highest Profit in a Decade
While it’s the most profitable time to sell in a decade, it’s also extremely difficult to find another home to purchase.
ATTOM Data Solutions recently reported that homeowners who sold in the second quarter realized an average price gain of $51,000 since purchase – the highest average price gain for home sellers since Q2 2007, when it was $57,000.
The average home seller price gain of $51,000 in Q2 2017 represented an average return of 26 percent on the previous purchase price of the home, the highest average home seller return since Q3 2007, when it was 27 percent.
The report also shows that homeowners who sold in the second quarter had owned an average of 8.05 years, up from 7.85 years in the previous quarter and up from 7.59 years in Q2 2016 to the longest average homeownership tenure as far back as data is available, Q1 2000.
“Potential home sellers in today’s market are caught in a Catch-22. While it’s the most profitable time to sell in a decade, it’s also extremely difficult to find another home to purchase, which is helping to keep homeowners in their homes longer before selling,” said Daren Blomquist, senior vice president at ATTOM Data Solutions. “And the market is becoming even more competitive, with the share of cash buyers in the second quarter increasing annually for the first time in four years.”
Cash sales share increases annually for first time since Q1 2013
All-cash sales represented 28.9 percent of all single family and condo sales in Q2 2017, down from 31.3 percent of all sales in the first quarter, but up from 27.3 percent of all sales in Q2 2016 – the first annual increase in the share of cash sales since Q1 2013.