Just like some stocks outperform others, the same is true for housing markets. While most housing markets have seen home value increases since 2009, some markets have skyrocketed and others just chugged along. As usual, I invoke the TINSTAANREM axiom — There Is No Such Thing As A National Real Estate Market. Nor is there such a thing as uniform home price changes across the country. Price is a function of the interaction of supply and demand.
The typical home seller in the second quarter of 2017 had owned their property 8.05 years versus 7.59 years 12-months earlier. The average price gain from the time of purchase was $51,000 — the most since the $57,000 gain (27 percent) garnered by home sellers in Q3 2007.
Where did homeowners selling their property in the 2nd quarter of 2017 realize the greatest percentage gains in home prices? ATTOM Data Solutions’ RealtyTrac group reports findings for cities that had at least 1,000 home sales transactions in the 2nd quarter of 2017 and also had available historical data. A total of 118 markets were included in the summary.
The following table shows the top housing markets in which sellers reaped the largest percentage gains. In addition to the data from RealtyTrac, also included is the total percentage job growth in the prior 8 years calculated from data reported by the Bureau of Labor Statistics. Each and every one of the top-10 markets had an 8 year job growth rate greater than the 11.74 percent level posted by the U.S. for the same time period.
Want to see if your market is included in the 118 cities within RealtyTrac’s study? To access the full research report from ATTOM Data Solutions click http://www.realtytrac.com/news/home-prices-and-sales/q2-2017-home-sales-report/
To review the ranking of home seller’s percentage gains in Q2 2017 for the top-37 markets as reported by USA Today click https://www.usatoday.com/story/money/personalfinance/2017/08/04/37-most-profitable-markets-home-sellers/531259001/
It’s no surprise that most Americans believe that real estate is the top investment asset today, given these returns. Nor is it a surprise that the home, for most American households, is once again the largest single share of their wealth.
While great news for the sellers, the bad news is that, in most instances, they need to buy back in to markets that may now be at all-time peak. Not a bad problem to have, however.