Being a home seller in the US right now is really good. This is because the housing market is booming in almost every corner of the country. According to a report by Attom Data Solutions that was released Thursday, homeowners who sold in the first quarter of this year gained $44,000 from the purchase. This equates to a 24% return on the buying price across the country which is the highest gain in almost 10 years.
Daren Blomquist, senior vice president at Attom believes that the selling prices will continue to get even better before they can become worse. Therefore, if you are considering moving, doing so this spring will help you fetch a good price for your house.
Cities with powerful economies have seen the highest price increase during the recovery of the housing market. Also, low housing supply has also contributed to the competitive housing market where bidding wars and high asking price sales have become common.
According to reports, the average home price in the first four months of 2017 was $225,000 which is 13% up from early 2016. Home in more luxurious markets have witnessed the highest price gains this year. For example, the average price gain in San Jose, California is $356,500 followed by San Francisco with an average price gain of $276,750.
However, even after 2017 being the most profitable time to sell a home, homeowners are not in hurry to list their homes. In fact, sellers in the last four months of the year had lived in their homes for nearly eight years. San Francisco has almost 10 years home ownership tenure which is one of the longest in the country. Reports state that between 2000 and 2007, the average homeownership period was only 4.26 years.
This could be because after the housing crisis, most homeowners opted to remain in their homes to rebuild their equity. Low housing listing today has also made homeowners afraid to sell as they fear that they will not find the ideal home to move into. Other homeowners relish the price appreciation but they are chanting Never sell’. Their idea is to acquire additional properties or pass their home to the future generations.
Not only are the home prices increasing, the houses are moving fast. According to data from Clear Capital, in 2011, homes sat on the market for about 84 but in the first quarter of 2017, homes are selling within 45 days after listing or advertisement. In faster moving markets, homes are selling within 21 days. This has led to fierce competition among home buyers. To beat the competition, homebuyers should have their finances loaded before they begin the home search.
If you are thinking about selling your home, timing is in your favor. Make sure to consult with a professional before you list the house or find out what your house is worth in your market.