August 08, 2017
Home Price Gain for Sellers Highest It’s Been in Decade
The average home price gain for sellers for the second quarter of 2017 topped $50,000 or 26% for the first time since the same quarter in 2007, when the average price gain was $57,000 or 27%, according to a recent report released by ATTOM Data Solutions.
The price gain is the price difference between the amount the seller just sold the house for and the amount they paid when they originally purchased it. It should be noted that the price gain doesn’t take into consideration real estate sales commissions and other fees related to selling a home.
What Areas Saw the Biggest Home Price Gain?
Sellers in San Jose, California, had the biggest average price gain of anywhere else in the country at 75% in Q2, followed by San Francisco, 65%; and Seattle, Washington, 63%.
How did sellers fare in states where our offices are located? In Providence, Rhode Island, median price gains came in a little higher than the national median at 26.9% or $53,000. And in Detroit, Warren and Dearborn, Michigan, the median price gains went up by an even more impressive rate of 37.1%, although that amounted to a lower dollar amount of $39,000.
Is Now a Good Time to Sell?
The answer seems pretty obvious at first since sellers are very likely to make good profits from their home sales. This is especially true for homeowners who have been sitting on their homes just waiting for a seller’s market, or those who own more than one house.
However, sellers who have to turn around and purchase new homes may want to think a little harder and do a little research before making the decision to sell. That’s because as buyers, they’ll be paying higher prices when they themselves go to purchase homes.
Because of low home inventory, it may also be hard to even find a home in the areas where sellers want to relocate. After all, low housing inventory is one of the biggest drivers causing home prices to stay high right now.
Lincoln Abstract & Settlement Services
Lincoln Abstract & Settlement Services is nationally recognized and trusted by realtors and lenders to streamline the flow of documents and funds for a stress-free closing. We value communication and efficiency, working proactively to identify and resolve issues that could potentially delay the process. To learn more about our unrivaled services, call us at 1.877.696.5462.