Putting a home on the market now is paying off for most homeowners.
ATTOM Data Solutions found in their Q2 2017 U.S. Home Sales Report that homesellers who sold in the second quarter of 2017 averaged a price gain of $51,000 since their purchase, which is the highest price gain since the second quarter of 2007, when it was $57,000. The average return, 26, percent, also was the highest in nearly a decade, second only to the third quarter of 2007, when it was 27 percent.
However, homeowners are hanging on to their homes just a bit longer. The average homeowner who sold last quarter owned their home for an average of 8.05 years, an increase from 7.85 years the first quarter. This is the longest homeowners have stayed since the report started in the beginning of 2000.
“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. “And the market is becoming even more competitive, with the share of cash buyers in the second quarter increasing annually for the first time in four years.”
All-cash purchases saw a slight decrease for the second quarter, making up 28.9 percent of single-family and condo sales, a decrease of 2.4 percent from the first quarter. Investors purchased 2.1 percent of properties, an increase of 0.3 percent from the first quarter, but down 0.5 percent year-to-year.
Specific to Pennsylvania, Philadelphia homeowners actually lived in their homes less than the national average before selling, while Pittsburgh saw a 31 percent increase in distressed sales.