As the median sales price continues to rise, homeowners are staying longer before they move, and inventory remains at critically low levels. There are other factors that are impacting the growth of the industry, such as home seller profits, reduced cash sales and growth of institutional purchases. Here are some of these stats:
Average Home Seller Gains
U.S. homeowners selling in Q2 2019 realized an average home price gain since purchase of $67,500, an average 33.9% return from the original purchase price. The results from Q2 2019 is an increase from an average gain of $57,706 reported in Q1 2019 and is also an improvement from the average gain of $60,100 reported in Q2 2018.
Cash Sales by Percentage Decrease Annually
Domestic all-cash sales represented 25% of all single family and condo sales in Q2 2019, which is down 26.9% of all from sales in Q2 2018 of and from 27.7% of all sales from Q1 2019.
Institutional Investor Sales
The share of institutional investor sales of U.S. single family homes and condos sold (entities buying at least 10 properties in a calendar year) came in at 2.2% in Q2 2019, which is up from 1.9% in Q1 2019 but down from 2.4% in Q2 2019. The annual slow-down might be attributed to the increase in the median sales price. The metro areas with the highest institutional purchases were in Atlanta, Charlotte, and Memphis; reporting 7.9%, 6.7%, and 6.4%, respectively.
The period of time homeowners remained in the property before selling in Q2 2019 averaged 8.09 years. This was a new high, up 3% from Q1 2019 and up 4% from Q2 2018. The homeownership tenure has nearly doubled from the average of 4.21 years recorded nationwide between Q1 2000 and Q3 2007, but has slowly increased from the Great Recession.
If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.
Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.
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