The fourth quarter of 2017 resulted in sellers realizing a 10-year high of profits and the homeownership rate reaching the highest level in three years as reported This Week in Real Estate by ATTOM Data Solutions and the U.S. Census Bureau respectively. Below are a few highlights from the last week of January that influence our business:
*Average Home Seller Profits at 10-Year High of $54,000 in Q4 2017. ATTOM Data Solutions released its Year-End and Q4 2017 U.S. Home Sales Report Tuesday, which shows that home sellers in Q4 2017 realized an average home price gain since purchase of $54,000, up from $53,732 in the previous quarter and up from $47,133 in Q4 2016 to the highest since Q3 2007 — a more than 10-year high. That $54,000 average home seller profit represented an average 29.7 percent return on investment compared to the original purchase price, up from 28.8 percent in the previous quarter and up from 26.8 percent in Q4 2016 to the highest average home seller ROI since Q3 2007. “It’s the most profitable time to sell a home in more than 10 years yet homeowners are staying put longer than we’ve ever seen,” said Daren Blomquist, senior vice president at ATTOM Data Solutions. “While home sellers on the West Coast are realizing the biggest profits, rapid home price appreciation in red state markets is rivaling that of the high-flying coastal markets and producing sizable profits for home sellers in those middle-American markets as well.” Among 155 metropolitan statistical areas with sufficient historical data, those with the highest average home seller ROI were San Jose, California (90.9 percent ROI); San Francisco, California (73.3 percent); Merced, California (64.6 percent); Seattle, Washington (64.4 percent); and Santa Cruz, California (59.8 percent). The U.S. median home price in 2017 was $235,000, up 8.3 percent from 2016 to a new all-time high. Annual home price appreciation in 2017 slowed slightly compared to the 8.5 percent in 2016.
Full Story… https://www.attomdata.com/news/home-prices-and-sales/2017-home-sales-report/
*Homeownership Rate Reaches Highest Level in Three Years. The national homeownership rate reached its highest level since the fourth quarter of 2014, increasing slightly in the last quarter of 2017, according to the Quarterly Residential Vacancies and Homeownership report from the U.S. Census Bureau. The homeownership rate remained statistically unchanged, inching up to 64.2% in the fourth quarter. This is up from 63.7% the year before and 63.9% in the third quarter. Among Millennials, the homeownership rate ticked up slightly from 35.6% to 36%. Among older generations, the homeownership is significantly higher at 75.3% for those aged 55 to 64 years and 79.2% for those aged 65 years and older. “What’s even more positive news for the housing market is that much of the increase in the homeownership rate over the past year has come from 18 to 44-year olds,” Trulia Chief Economist Ralph McLaughlin said.
Full Story… https://www.housingwire.com/articles/42403-homeownership-rate-reaches-highest-level-in-three-years
*Private Residential Spending Reaches Cycle High. NAHB analysis of Census Construction Spending data shows that total private residential construction spending rose 0.5% in December to a seasonally adjusted annual rate of $526.1 billion, the highest level since March 2007. Total private residential construction spending rose 6.2% last year, after increasing 12.5% in 2016. The monthly gains are largely attributed to the increase in multifamily construction spending. It rebounded strongly 2.6% after a dip of 0.5% in November, reaching a $64.0 billion annual pace in December. Single-family construction spending inched up 0.4%, after surging 2% in November. Remodeling spending slipped slightly 0.2% in December. On a year-over-year basis, spending on home improvements increased by 3.2%.
Full Story… http://eyeonhousing.org/2018/02/private-residential-spending-reaches-cycle-high/
Have a productive week.