The second-quarter gain marks a 26% average return on the previous purchase price
Homeowners who sold their homes in the second quarter saw $51,000 in average price gain since purchase, the highest gain since the second quarter of 2007, according to data from ATTOM Data Solutions.
The second-quarter average gain also represents a 26% average return on the previous purchase price. This is the highest average return since the third quarter of 2007.
Average homeownership tenure reached a record high during the quarter. Those who sold in the quarter owned for an average of 8.05 years, an increase from the 7.85 year average in the prior quarter and the 7.59 year average in the year-ago period.
"Potential home sellers in today's market are caught in a Catch-22. While it's the most profitable time to sell in a decade, it's also extremely difficult to find another home to purchase, which is helping to keep homeowners in their homes longer before selling," said Daren Blomquist, senior vice president at ATTOM Data Solutions.
The quarter also saw the first annual increase in cash sales since the first quarter of 2013. Of all single family and condo sales, all-cash sales comprised 28.9%. The figure is a decrease from the 31.3% in the first quarter but an increase from the 27.3% in the second quarter of 2016.
Across the U.S., single family homes and condos sold to institutional investors made up 2.1% of all sales during the quarter, an increase from the 1.8% in the first quarter and a decrease from the 2.6% share a year ago. However, 26% of metro areas countered the national trend and saw the share of sales to institutional investors increase.
The share of distressed sales fell to its lowest level since the third quarter of 2007. Bank-owned (REO) sales, third-party foreclosure auction sales and short sales made up 13.4% of all single family and condo sales during the quarter. This represents a decrease from the 17.1% in the first quarter and from 15.2% in the second quarter last year.
Related stories:
Low supply drives decline in June existing-home sales
Home sellers’ sentiment beat buyers’ outlook in May
