The recent Q2 2017 Home Sales Report by ATTOM Data Solutions demonstrates that home sellers realized the highest average gain for a decade in the second quarter of this year.
The national average home seller price gain of $51,000 in Q2, represented a 26% average return on the previous purchase price of the home, the highest gain since the 27% posted in the third quarter of 2007.
More locally, the Albuquerque area saw a $34,458 average home seller gain since purchase in Q2, representing an average return of 22%.
This is yet another strong indicator of just how good things are for sellers right now. While Albuquerque might lag behind the national average of $51,000, let's not forget that figure includes the big hitting states like Massachusetts, California, New York, Hawaii and District of Columbia, where ultra high property prices have little relationship to much of the rest of the country.
Furthermore, the ABQ result also demonstrates how relatively affordable homes continue to be in the area. Therefore we can arguably be said to have had a more balanced relationship here between advantages for sellers and buyers, which again suggests a rather healthy overall mix in our homes market.
What we can also see, of course, are the impressive returns on investment (ROI) made by sellers here.
And one of the key reasons for these gains is the simple fact that people are living in the same home for longer now. Indeed ATTOM says that we're currently seeing the longest average homeownership tenure since such data was first compiled at the beginning of 2000.
Of course longer tenure lengths also speak to the issues we've seen nationwide, and indeed nearer to home, with low inventory of available homes for sale, which it would be fair to assume have a pretty direct relationship with the fact that people are living in the same home for longer, thus also helping to apply upward price pressure and provide enhanced ROI due to the short supply across most market sectors.
In truth, we're not hugely surprised to see that records are being broken in this respect. We've been tracking constant rises in median and average home prices for some time, so it could certainly be said that higher returns are becoming more predictable.
It's simply a better time to be a home owner than before the last recession. This is also reflected in the decade low foreclosure figures that have been posted earlier this year.
In conclusion, it's probably fair to suggest that these latest figures on improved equity levels take us back to the time before the last recession started and the cycle back to prosperity is arguably now complete.
Fantastic opportunities for sellers abound in our corner of New Mexico, so why not contact us today and let us use all our experience to help you create an effective strategy to optimize your return.