Homeowners continue to realize significant returns as a percentage of their original purchase price as reported This Week in Real Estate in ATTOM Data Solutions Q1 2018 Home Sales Report. The average home seller in the first quarter of this year realized a 29.5% return as a percentage of original purchase price. Below are a few highlights from the third week of April that influence our business:
* Small Gain for Housing Starts in March. Total housing starts increased slightly in March, led by multifamily construction strength. Starts increased 1.9% to a 1.32 million seasonally adjusted annual rate, according to the joint data release from the Census Bureau and HUD. However, the pace of single-family starts declined in March, falling 3.7% to an 867,000 seasonally adjusted annual rate, due to lingering weather effects in some parts of the nation. The three-month moving average for single-family starts remained near a post-recession high rate of construction (889,000). These recent trends for single-family starts match ongoing healthy levels of the NAHB/Wells Fargo Housing Market Index, now registering a score of 69. For the first quarter of 2018, single-family starts are 7% higher than this time in 2017, in-line with forecast for modest gains. Single-family permits were down 5.5% in March, although are recording a 5.3% improvement thus far in 2018 relative to this time in 2017.
* Most States Record YTD Single Family Permits Growth in February 2018.
Over the first two months of 2018, the total number of single-family permits issued nationwide reached 123,871. On a year-over-year basis, this is an 11.2% increase over the February 2017 level of 111,356. The results from theSOC
are similar, single-family permits over the second month of 2018 was, 122,800 which is 10.2% ahead of its level over the same period of 2017, 111,400. Between February 2017 to February 2018, 34 states saw growth in single-family permits issued while there was no change in New Hampshire. Seventeen states, including California, recorded a growth above 11.2% but 15 states, including New Jersey, Connecticut and Illinois, as well as the District of Columbia registered a decline. Idaho had the highest growth rate during this time at 53.9% while single-family permits in the District of Columbia declined by 51.0%. In the single-family sector, Texas led with 19,893 permits issued year-to-date in February 2018 and Florida was second with 13,964 during this time. Meanwhile the lowest number came from the District of Columbia with 24 permits. The 10 states issuing the highest number of single-family permits combined accounted for 64.0% of the single-family permits issued.
* 54% of U.S. Metros Post Median Home Prices Above Pre-Recession Peaks in Q1 2018.
On Thursday ATTOM Data Solutions released its Q1 2018 U.S. Home Sales Report, which shows that median home prices in 57 of 105 metropolitan statistical areas analyzed in the report (54 percent) were above their pre-recession home price peaks in the first quarter. Nationwide the median home price of $240,000 in Q1 2018 was less than 1 percent below its pre-recession peak of $241,500 in Q3 2005, but still up 9.1 percent from a year ago. Among the 105 metropolitan statistical areas analyzed in the report, those posting the biggest year-over-year increase in median home prices were San Jose, California (up 33 percent); Flint, Michigan (up 20 percent); Spokane, Washington (up 18 percent); Reno, Nevada (up 17 percent); and Seattle, Washington (up 16 percent). U.S. homeowners who sold in Q1 2018 realized an average home price gain since purchase of $53,369, down from an average gain of $54,000 in Q4 2017 but still up from an average gain of $45,000 in Q1 2017. The average home seller gain of $53,369 in Q1 2018 represented an average 29.5 percent return as a percentage of original purchase price, down from a 29.8 percent return in the previous quarter but still up from a 25.7 percent return in Q1 2017. Among 154 metropolitan statistical areas analyzed in the report, those with the highest average home seller returns in Q1 2018 were San Jose, California (109.1 percent); San Francisco, California (73.6 percent); Seattle, Washington (66.0 percent); Kahului-Wailuku-Lahaina, Hawaii (65.3 percent); and Vallejo-Fairfield, California (58.8 percent).