Homeowners who sold their homes during Q4 2019 owned their homes for an average of 8.21 years, according to ATTOM Data Solutions.
This represents an increase from Q3 2019’s 8.08 years and Q4 2018’s 7.95 years. ATTOM. The report states that the latest figure represents the longest-average home seller tenure since Q1 2000—the earliest period where data is available.
Connecticut was home to the top-five markets with the longest housing tenures: Norwich (13.49 years); New Haven (13.32 years); Bridgeport-Stamford (13.23 years); Torrington (12.33); and Hartford (12.25 years).
Norwich’s homeownership tenure rose to 13.49 years from Q1 2000’s 5.55 years.
Oklahoma City was home to the shortest homeownership tenure at 6.16 years. Other markets with short tenures were Colorado Springs, Colorado (6.84 years); Detroit (6.88 years); Austin, Texas (7.01); Denver (7.08 years); Grand Rapids, Michigan (7.23 years); San Antonio (7.25 years); Minneapolis (7.38 years); Provo, Utah (7.50 years); and Chattanooga, Tennessee (7.52 years).
Increased housing tenures, according to First American, are negatively impacting the market’s potential. First American reported last year that increasing tenure length has cost the market 137,230 potential home sales.
First AM says housing is “the most durable consumer good we’ll ever buy,” and rising home-buying power fuels increases demand.
“You can’t buy what’s not for sale, but rising existing-home sales means more homes on the market, helping to meet the growing demand,” said Mark Fleming, First American Chief Economist. “While several factors may trigger a directional switch for market potential, the current environment of low mortgage rates and wage growth driven by a strong labor market, supports a healthy housing market for the remainder of 2019.”
Additionally, that report found that while the market for potential existing-home sales rose 3.8% annually, the current seasonally adjusted annualized rate is 18.6% below the pre-recession peak of market potential set in March 2004.
December’s data represents a 23% year-over-year increase from December 2018 and 2019 saw 10.3% more new home sales than the prior year.