Real estate investors across the United States reaped solid dividends from steady price appreciation this Winter, according to a recent report.
Home sellers who sold in the first quarter realized an average price gain of $57,500 since purchase — an average 31.5 percent return on the purchase price, real estate analytics firm ATTOM Data Solutions found. While the profit margin took a dip from the fourth quarter of 2018’s $60,000 dividend, the rate is still up year-over-year when gains averaged $56,733.
ATTOM analyzed 123 U.S. metro areas for its report, finding the highest average home seller returns in the first quarter were San Jose, California (84.1 percent); San Francisco, California (70.9 percent); Seattle, Washington (63.1 percent); Modesto, California (59.7 percent); and Salt Lake City, Utah (56.5 percent).
In addition to sizeable investor profits, ATTOM reported that homeownership tenure is slightly down. Homeowners who sold in the first quarter had owned an average of 8.05 years, a small decline from a record-high average homeownership tenure of 8.17 years in the fourth quarter of 2018. 2019’s first quarter rate is still up year-over-year from 7.75 years in the first quarter of 2018.
A hearty majority of metros areas in the report were enjoying median prices above pre-Great Recession peaks, ATTOM found. Median home prices in 73 of the 123 metros — or 59 percent — were above pre-recession peaks in the first quarter of 2019, with top performers being Greeley, Colorado (79 percent above); Denver, Colorado (68 percent); Fort Collins, Colorado (67 percent); Austin, Texas (62 percent); and Dallas, Texas (58 percent).
In contrast, median home prices in 49 of the 123 metros — or 40 percent — were still below pre-recession peaks in the first quarter of 2019.
Leading the underperformers was York-Hanover, Pennsylvania (56 percent below); Trenton, New Jersey (35 percent); Atlantic City, New Jersey (32 percent); Bridgeport-Stamford-Norwalk, Connecticut (28 percent); and New Haven, Connecticut (22 percent).