Learning from Year-Over-Year Home Sale Data

Within the mortgage and real estate worlds, few things are as valuable as information and data. From the latest mortgage rates to recent mortgage trends, home price tendencies and numerous other areas, having accurate data and interpreting it properly are vital to achieving success within any real estate transaction.

At Primary Residential Mortgage, we’re here to provide you with numerous pieces of important mortgage and real estate data, from mortgage rates you qualify for to several others. Much can be learned about this realm by simply tracking data from previous calendar years and comparing it – with this in mind, let’s go over some end-of-2019 data from ATTOM Data Solutions in California, which reported interesting findings on home price gain, home seller ROI and other areas of interest to those on the real estate market.

Basic Price Gain Data

Per the data available, which covers home sellers nationwide, average home price gain for a seller in the year 2019 was a remarkable $65,500. This compares to $58,100 in 2018 and $50,027 back in 2017, for a two-year gain of nearly 33%.

This latest figure, which researchers based on median purchase and resale prices, was the single highest in the US housing market since 2006, before the housing crash. Its 34% return on investment (ROI) is also higher than the two previous years and is also the highest since 2006.

Limited ROI Gains

Now, before you get too excited here, pump the brakes just a tad. This same data shows that while ROI is indeed up from previous years, the rate at which it increased was actually much lower than we’ve seen recently.

In fact, the gain of less than 3 percentage points over 2018 was the smallest year-over-year increase since 2011. Real estate pros interpret this to mean that while sellers are still in a great spot due to low mortgage rates, there are signs that the tides could be changing here to some degree.

Other Data

Some other basic data to consider from this same report:

• Median home price increased 6.2% in 2019, while annual home-price appreciation increased – more than the previous year, but less than the one before.
• Home seller tenure, or the average length of time home sellers had owned their home before selling, was at an all-time high since 2000 in the final quarter of 2019 (data is not available before 2000, so this could be one of the highest figures ever).
• All-cash purchases accounted for just over 25% of all single-family home and condo sales for 2019, the lowest for any year since 2007 – but still well above pre-recession figures between 2000 and 2007.

For more on the latest in home sale data, or to learn about any of our home loan options or mortgage lender services, speak to the team at Primary Residential Mortgage today.

*PRMI NMLS 3094. PRMI is an Equal Housing Lender. Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. Programs, rates, terms, and conditions are subject to change and are subject to borrower(s) qualification. This is not a commitment to lend. Opinions expressed are solely my own and do not express the views of my employer.