And home sellers saw an increase in their profit margin
There was a rise in the US median home price in the third quarter of 2019 according to new figures this week.
Across multifamily and single family homes, the median rose 8.3% nationally compared to a year earlier and was up 2.9% from the second quarter of 2019.
The stats from ATTOM Data Solutions also reveal an increased profit margin for those who sold their homes in Q3 2019, at 34.5%, a post-recession high and up from 34.3% a year earlier. Dollar gains hit $68,686.
"The seven-year U.S. housing boom is back in high gear. After a series of relatively small price increase quarters, home prices saw quite the uptick, seller profits rose and the problem of distressed sales continued to fade, helping to make the third quarter the strongest in four years," said Todd Teta, chief product officer at ATTOM Data Solutions. "That all happened as mortgage rates sank back to near-historic lows, which clearly powered the market upward along with stock market surges and a continued strong economy. There had been signs before the latest surge of a cooling market, but they seem to have diminished, at least for now."
Homeowners still reluctant
Despite the potential returns, homeowners are still staying in their homes for longer.
The average homeownership tenure hit a new high of 8.19 years, up 3% from last quarter and up 3% from Q3 2018.
Median home prices increased year-over-year in 148 of the 155 metro areas analyzed in the report (95%) in the third quarter of 2019, led by Lansing, MI (25.1%); Green Bay, WI (18.1%); Johnson City, TN (16.7%); Hickory-Lenoir-Morganton, NC (13.7%) and Spokane, WA (13.5%).
Median home prices in 122 of the 155 metro areas analyzed in the report (79%) were above pre-recession peaks in the third quarter of 2019.
Cash sales tumble
All-cash sales represented 24.3% of all single family and condo sales in Q3 2019, marking the lowest level since the third quarter of 2007 and down from 24.5% in the previous quarter and from 26.3% in Q3 2018.
Sales to FHA buyers represented 12.1% of all single family and condo sales in Q3 2019, up from 11.7% in the previous quarter and 10.4% in Q3 2018. It was the highest since Q4 2017.
Total distressed sales — bank-owned (REO) sales, third-party foreclosure auction sales, and short sales — accounted for 10.5% of all single family and condo sales in Q3 2019, down from 11.3% in the previous quarter and from 11.6% from the same time last year. Distressed sales as a share of all sales was at its lowest point since the fourth quarter of 2006.
