ATTOM Data Solutions’ First Quarter U.S. Home Sales Report Reveals Some Softening
ATTOM Data Solutions released is first quarter 2019 U.S. Home Sales Report on April 25.
Among its findings are a slight dip in U.S. average homeownership tenure and average sales price gains.
“We are starting to see homes sales prices and profit margins softening for the nation, and the average homeownership tenure did see a slight dip from last quarter,” said Todd Teta, chief product officer at ATTOM Data Solutions. “However, home prices are still above pre-recession peaks in 59 percent of local markets, and as the buying season starts to kick into gear, the next few months may provide even more answers to the question of whether a lasso is indeed around the market or if the recent trend is a temporary bump in the ride.”
Average Sales Price Gains
Homeowners who sold in the first quarter saw an average price gain of $57,500 since purchase, or an average 31.5 percent return on their original purchase price. That’s down from an average gain of $60,000 in first quarter 2018 but up from an average gain of $56,733 in first quarter 2018.
Of the 123 metropolitan statistical areas included in the report, those with the highest average home seller returns in first quarter 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).
Homeownership Tenure
Homeowners who sold in the first quarter owned their homes an average of 8.05 years.
How does that compare to previous quarters? According to the report, that average represents a decrease from a record-high average of 8.17 years in the fourth quarter of 2018, but it is up from the first quarter of 2018 when the average tenure was 7.75 years. Before the Great Recession, homeownership tenure averaged 4.21 years nationwide between the first quarter of 2000 and the third quarter of 2007.
Average homeownership tenure was down from a year ago in Kansas City, Tucson, Boston, Orlando and Oklahoma City, however. Those cities were among 25 of the 108 metro areas in the report to run counter to the national trend.
Among major metropolitan areas with a population of at least 1 million, those with the longest average homeownership tenure for home sellers who sold in the first quarter were Hartford, Connecticut (12.52 years); Boston, Massachusetts (12.36 years); Providence, Rhode Island (11.15 years); San Francisco, California (10.40 years); and San Jose, California (10.27 years).
