This Week in Real Estate: June 11, 2018

According to CoreLogic’s Q1 2018 Home Equity Report that was released This Week in Real Estate, homeowners with mortgages saw their equity increase 13.3 percent year-over-year, representing a gain of more than $1 Trillion since the first quarter of 2017. Below are a few highlights from the first week of June that influence our business:

* Where Are Millenials Moving. Where are milliennials headed, at least in terms of places they are moving to. For the second year running, SmartAsset set about finding out. Washington received the largest influx of millennials both in terms of net influx and net influx relative to population. This state received nearly 40,000 more millennials than it lost, which is around 0.55% of the overall population. Seattle was the main beneficiary of these millennials, which we’ll discuss in the section below. Washington was not the only western state to crack this top 10: Colorado, Oregon, Nevada and Arizona are also in the top 10. Colorado and Oregon in particular were popular landing spots for millennials. Colorado received over 26,500 more millennials than it lost and for Oregon that number was just under 12,000. Nevada and Arizona had slightly less spectacular numbers, receiving 8,800 and 7,000 millennials, respectively. The South makes up the rest of the states in our top 10. The no. 2 ranking state is Texas, with a net influx of nearly 34,000 millennials, followed by Virginia which gained 18,300 more millennials than it lost. Georgia, North Carolina and Florida round out the top 10.

* Home Equity Gains Topped $1 Trillion in the First Quarter of 2018CoreLogic released Thursday the Home Equity Report for the first quarter of 2018, which shows that U.S. homeowners with mortgages (which account for roughly 63 percent of all properties) have seen their equity increase 13.3 percent year over year, representing a gain of $1.01 trillion since the first quarter of 2017. Additionally, the average homeowner gained $16,300 in home equity between the first quarter of 2017 and the first quarter of 2018. While home equity grew nationwide, western states experienced the largest increase. Washington homeowners gained an average of approximately $44,000 in home equity, and California homeowners gained an average of approximately $51,000 in home equity. “Home-price growth has accelerated in recent months, helping to build home-equity wealth and lift underwater homeowners back into positive equity the primary driver of home equity wealth creation,” said Dr. Frank Nothaft, chief economist for CoreLogic. “The CoreLogic Home Price Index grew 6.7 percent during the year ending March 2018, the largest 12-month increase in four years. Likewise, the average growth in home equity was more than $15,000 during 2017, the most in four years. Washington led all states with 12.8 percent appreciation, and its homeowners also had much larger home-equity gains than the national average.”

* U.S. Home Flipping Rate Matches Six Year High in Q1 2018. ATTOM Data Solutions released Thursday its Q1 2018 U.S. Home Flipping Report, which shows that 48,457 U.S. single family homes and condos were flipped in the first quarter of 2018, down 4 percent from the previous quarter and down 3 percent from a year ago to a two-year low. The 48,457 homes flipped in the first quarter represented 6.9 percent of all home sales during the quarter, up from 5.9 percent in the previous quarter and unchanged from a year ago – matching the highest home flipping rate since Q1 2012. Homes flipped in Q1 2018 sold at an average gross profit of $69,500, up from an average gross flipping profit of $68,250 in the previous quarter and up from $66,287 in Q1 2017 to the highest average gross flipping profit since ATTOM began tracking in Q1 2000. The average gross flipping profit of $69,500 in Q1 2018 translated into an average 47.8 percent return on investment compared to the original acquisition price, down from a 48.9 percent average gross flipping ROI in Q4 2017 and down from an average gross flipping ROI of 50.3 percent in Q1 2017 to the lowest level since Q2 2015 – a nearly three-year low.

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