When to Sell Your Home for the Highest Return on Investment
ATTOM Data Solutions released its Q1 2019 U.S. Home Sales Report This Week in Real Estate, finding that homeowners who sold their home in the first quarter realized a 31.5% return on their investment. Below are a few highlights from the fourth week of April that influence our business:
New Home Sales Rise in March with Lower Rates. Contracts for new, single-family home sales increased almost 5% on a monthly basis to a 692,000 seasonally adjusted annual rate according to estimates from the joint release of HUD and the Census Bureau. The months’ supply number improved to 6.0, which indicates the market is stabilizing after the fall-off in sales last Fall due to higher interest rates. For the first quarter of 2019, new home sales are running 1.7% higher than the first quarter of 2018. However, while sales were up 9.6% for the quarter in the South (the largest region), sales were down 5.9% in the West, 8.1% in the Midwest and 17.6% in the Northeast.
U.S. Home Sellers Realized Average Price Gain of $57,500 in First Quarter of 2019. ATTOM Data Solutions released its Q1 2019 U.S. Home Sales Report on Thursday, which shows that homeowners who sold in the first quarter realized an average price gain of $57,500 since purchase, representing an average 31.5% return on the purchase price. Meanwhile, the report also shows that homeowners who sold in the first quarter had owned an average of 8.05 years, down slightly from a record-high average homeownership tenure of 8.17 years in Q4 2018 but still up from 7.75 years in Q1 2018. Homeownership tenure averaged 4.21 years nationwide between Q1 2000 and Q3 2007, prior to the Great Recession.
Homeownership Rate Flat, But Household Growth Booming. According to the latest Housing Vacancies and Homeownership data release from the U.S. Census Bureau, the homeownership rate was flat year-over-year at 64.2 percent in the first quarter of 2019. The flat change was due primarily to a strong uptick in new renter households, although growth among owner households continues to strongly outpace renters. While the homeownership rate was flat over the past year, the first quarter of 2019 was the sixth consecutive quarter that owner-occupied households grew by more than a million, at nearly 1.1 million new owner households. Total household growth remains strong, topping 1 percent for six straight quarters, and continues the most significant streak of household growth in more than 12 years.