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The first quarter of 2017 proved to be an excellent time to be a home seller, according to new data from the country’s largest property database ATTOM Data Solutions. But despite sellers seeing the largest returns on their investments in a decade, they are staying put in their homes longer.
ATTOM studied 97 metro areas with at least 1,000 home sales in the first quarter that had previous sale price information available.
Sellers who sold their home in the first quarter saw an average price gain of 24 percent or $44,000 on the purchase price, says ATTOM. This was the highest average gain with respect to both dollar amount and percentage since the third quarter of 2007.
The highest price gains were recorded in three California metros — San Jose ($365,500), San Francisco ($276,750) and Los Angeles ($187,000). Sellers in San Jose saw a 71 percent return on their investment, the largest of all the metros in the study. San Francisco and Los Angeles home sellers saw a 65 percent and 56 percent return, respectively.
“Across our Southern California markets, low listing inventory has continued to drive multiple-offer scenarios,” says Michael Mahon, the president at First Team Real Estate, which covers the Southern California market.
Meanwhile, homeowners who sold in the first quarter owned their home an average of 7.97 years. While this was just below the record high rate of 8 years recorded the previous quarter, it was up from the 7.68 years recorded last year.
In the years since the Great Recession, homeowners have been staying put in their homes longer than they had prior. Homeowner tenure averaged 4.26 years between the beginning of 2000 through the third quarter of 2007, says ATTOM.
“This counterintuitive combination is in part the result of the low inventory of move-up homes available for current homeowners, while also perpetuating the scarcity of starter homes available for first-time homebuyers,” says senior vice president at ATTOM Data Solutions Daren Blomquist.
The tenure of homeownership was down year-over-year in nine of the 66 markets ATTOM analyzed.
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