ATTOM Data Solutions who curates the nation’s largest multi-sourced property database recently released a report on real estate data stating that the second quarter of 2017 home sellers sold their homes for an average of $51,000 more than when they bought the home. This average net hasn’t been this high since 2007 when it was $57,000. These sellers got an average return on their investment of 26 percent.
Some other qualifiers; the homes were owned for an average of eight years which is the longest streak since 2000. This is also when ATTOM Data Solutions began tracking their data. I checked out their map of Home Seller Profits by Metro Q2 2017 and found Greenville/Anderson/Mauldin sellers gained an average of $20,000 with a 15.8% average rate of return. Spartanburg, which is north of us, had an average gain of $18,000 with a 15.1% average rate of return. Columbia to our south had smaller average gain at $16,950 with a 14.0% average rate of return.
So although it is a very profitable time to sell your Greenville home, it will be difficult to find another home to buy. The result is that homeowners are staying in their homes longer and resisting the urge to move up or move down right now because inventory is low. The real estate market is also becoming more competitive due to an influx of cash buyers which is one the increase for the first time in four years.
With regards to all single family and condo sales, all-cash sales were 28.9% of them. Raleigh, North Carolina had 57.4 percent cash sales in the second quarter of 2017 reporting slightly higher than cities like Miami, Detroit, Oklahoma City and Tamp-St. Petersburg. The population in these cities is at least 1 million people.
The ATTOM map shows that our area Greenville/Anderson/Mauldin had 33.4% of all-cash sales which represented 2% of the total sales share. Spartanburg to our north had 45.8% of all-cash sales which represented 40% of their total sales. Columbia to the south was at 38.8% all-cash sales with it being 38% of their total sales.
Also of note is that total distressed sales or bank-owned sales, auctions and short sales only represented 13.4% of all single family and condo sales in the second quarter of 2017. Dropping from 17.1% in the first quarter and reporting as the lowest level since the third quarter of 2007.
Looking back over this data one can infer that the real estate housing marketing has recovered from the crash that happened in 2007 and that sellers are likely getting up to 100% of their asking prices. We can also infer that if you sell your home for that great profit margin, the market cannot guarantee that you will be able to find a replacement home. National inventories still need to recover. It seems that builders are still a bit leery of jumping back into full ahead home building preferring to keep a small inventory or doing build-to-suit once they have an order for a home.
I am including a map provided by ATTOM Data Solutions below. Enjoy!
Check out this National Association of Realtors July 2017 Housing Minute video.
For notice on daily events LIKE our Facebook page @VictoriaCottlesCorner.
And remember if you, a friend or family member need assistance with selling or buying a home I can help. Referrals and people needing relocation assistance are welcome! Search Single Family homes in Greenville. Search Condos and Townhomes in Greenville.