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Home Sellers Netting Profit in Q1
ATTOM Data Solutions has released its First-Quarter 2020 U.S. Home Sales Report, which shows that home sellers nationwide realized a home price gain of $67,100 on the typical sale, up from $66,264 in the fourth quarter of 2019 and up from $59,000 in the first quarter of last year.
That $67,100 typical home-seller profit represented a 33.7% return-on-investment compared to the original purchase price, down from the post-recession high of 34.4% in the fourth quarter of 2019, but up from 32.8% a year ago.
At the same time, the median price for single-family homes and condominiums rose to a new high of $265,900 in the first quarter of 2020, up 2.9% quarterly and 11.3 percent year-over-year. The annual increase was the largest since the third quarter of 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.”
The U.S. median home price increased annually 11.3% in the first quarter of 2020, hitting a new high of $265,900. The annual home-price appreciation in the first quarter far surpassed the 2.8% annual gain in the first quarter of 2019 and the 7.6% gain the first quarter of 2018.
Homeowners who sold in the first quarter of 2020 had owned their homes an average of 8.01 years, down slightly from 8.04 years in the previous quarter but up from 7.72 years in the first quarter of 2019.
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