This Week in Real Estate: May 1, 2017


Cities in the Pacific Northwest continue to experience this country’s highest year-over-year price appreciation as reported by Case-Shiller This Week in Real Estate. You can now add to the region’s profile some of the highest percent return on previous purchase price. Below are a few highlights from the fourth week of April that influence our business:

* ATTOM: Average Homeowner Gains 24% Return in Equity Since Purchase. ATTOM Data Solutions released its Q1 2017 U.S. Home Sales Report on Thursday, which shows that homeowners who sold in the first quarter realized an average price gain of $44,000 since purchase, representing an average 24 percent return on the purchase price – the highest average price gain for home sellers in terms of both dollars and percent returns since Q3 2007. Meanwhile the report also shows that homeowners who sold in the first quarter had owned an average of 7.97 years, down slightly from a record-high average homeownership tenure of 8.00 years in Q4 2016, but still up from 7.68 years in Q1 2016. “The first quarter of 2017 was the most profitable time to be a home seller in nearly a decade, and yet homeowners are continuing to stay put in their homes longer before selling,” said Daren Blomquist, senior vice president with ATTOM Data Solutions. “This counterintuitive combination is in part the result of the low inventory of move-up homes available for current homeowners, while also perpetuating the scarcity of starter homes available for first-time homebuyers. Metro areas with the highest percent return on the previous purchase price were San Jose, CA (71 percent ROI); San Francisco, CA (65 percent); Seattle, WA (56 percent); Portland, OR (52 percent); and Modesto, CA (51 percent).
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* New Home Sales Soar Above Market Expectations. New home sales soared in March, beating out experts’ expectations, but new homes for sale dropped, according to the report released Tuesday by the U.S. Census Bureau and the U.S. Department of Housing and Urban Development. Sales of new single-family homes in March 2017 came in at a seasonally adjusted annual rate of 621,000, according to the report. This is an increase of 5.8% from February’s 587,000 and is 15.6% higher than March 2016’s 537,000 sales. “New home sales increased to an annualized rate of 621,000, well above the Street expectations of 587,000,” iServe Residential Lending director of capital markets Brent Nyitray wrote in a note to his clients. The median sales price of new homes sold in March increased to $315,100, up from $296,200 in February.
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* Case-Shiller: Home Prices Hit Fourth Consecutive All-Time High. Home prices continued to expand in February, hitting their fourth consecutive all-time high, according to the S&P Dow Jones Indices. Seattle, Portland and Dallas reported the highest year-over-year gains among the 20-city composite. In February, Seattle led the way with a 12.2% year-over-year price increase, followed by Portland with 9.7%. Dallas replaced Denver in the top three with an 8.8% increase.
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Have a productive week!

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