Home Sellers Reaping Big Rewards

ATTOM Data Solutions reports that home sellers across the U.S. realized a home-price gain of $67,100 during Q1 2020. 

This represents an increase from Q4 2019’s gain of $66,264 and a year-over-year increase from Q1 2019’s $59,000. 

The profit for a home seller was a 33.7% return on investment compared to the original purchase price, which is down from the post-recession high of 34.4% during Q4 2019. The increase during Q1 2020 was higher than last year’s 32.8%. 

However, the median home price rose to $265,900 during Q1 2020—up 2.9% from the prior quarter and 11.3% year-over-year. This is the largest increase since Q3 2013. 

“The national housing market continued at full throttle in the first quarter of 2020, setting new price and profit records as it entered its ninth straight year of gains. After it looked like things were settling down last year, the market has again roared ahead, with significant increases,” said Todd Teta, Chief Product Officer at ATTOM Data Solutions. “It is extremely important to note that the latest momentum is likely to hit a wall and reverse because of the drastic economic slowdown caused by the Coronavirus pandemic. Millions of Americans are newly unemployed, and most people are practicing social distancing, which could bring things to a halt just as the Spring buying season begins. Despite that cloud, the numbers for Q1 still do remain upbeat.”

Of the 108 metro cities with at least 1,000 single-family homes during Q1 2020, metros with the highest return on investments were San Jose (81.8%); San Francisco (67.7%); Seattle (63.6%); Spokane, Washington (61.8%); and Boise, Idaho (59.1%). 

The biggest annual increase in median home prices was found in Boise (21.9%); Milwaukee (19.1%); Panama City, Florida (18.4%); Salisbury, Maryland (15.4%); and New Orleans (13.9%). 

Those who sold their home during Q1 2020 had owned their homes for an average of 8.01 years, which is down from the 8.04 years in Q4 2019. This, however, is up from Q1 2019’s 7.72 years.