Real Estate News

Report shows higher figures for Q1 property sellers

Published: 01 May 2017

After years of making low or no profit off of home sales, property owners seem to have hit a new stride as of 2017. According to a report from ATTOM Data Solutions, profits for sellers increased in the first quarter of 2017, with several examples of gains throughout the country and a continuation of a possible positive trend from last year.

Though the median price for a home did reach a notable peak of $225,000, the overall pace of sales seemed favorable to owners. Profits from these transactions reached their highest percentage levels since the third quarter of 2007.

San Jose, California, had the biggest average increase, at least out of a group of 97 different metro markets, and home sales indicated a better environment for owners overall. This city also saw the highest average ROI of the listed markets. 

Another notable statistic was the link between increased sales growth and the amount of time the average seller had owned their home. In the first Q1 2017, this was at a level of nearly 8 years (7.97 exactly).

At the same time, other data showed some problems within the market. An April 27 release from the National Association of Realtors said that the Pending Home Sales Index "dipped" last month. Although pending sales grew in the south, other regions saw drops as large as 2.9 percent.

NAR chief economist, Lawrence Yun, explained the upper hand that sellers may have as of now to dictate the market.

"Sellers are in the driver's seat this spring as the intense competition for the few homes for sale is forcing many buyers to be aggressive in their offers," said Yun. "Buyers are showing resiliency given the challenging conditions."

He also added that less affordability could burden the market if it doesn't correct in the near future.