ATTOM Data Solutions tells us in its Annual Home Price Appreciation (HPA) report that the median single-family price for home/condominium sales hit a new peak record of $266,000 in Q2 2019, a whopping +10.8% increase from Q1 2019 and a +6.4% increase from Q2 2018.
Equally eye-popping is that 89% of all metros analyzed by ATTOM for this HPA report saw annual price appreciation in Q2 2019. Atlantic City led the pack with an annual home price appreciation increase of +16.0% followed by Boise City at +14.0%, Chattanooga at +13.9%, Mobile AL at +11.2% and Madison WI at +10.8%. In metros with +1M people, Milwaukee experienced an annual home price appreciation increase of +9.0%, Boston at +9.0%, Salt Lake City at +8.7%, Columbus OH at +8.1% and Birmingham AL at +6.3%.
Todd Teta, the chief product officer with ATTOM, said, “As warmer weather brings a rust of house hunters to market, the latest spike in median home prices marked the largest quarterly increase since Q2 2015 and the third largest increase since…2012…with mortgage rates dipping to a new low, it’s no surprise that people were wanting to buy a house, even if prices were at their peak. We expect milder home prices in the coming quarters.”
Overall, 74% of the 149 metros analyzed experienced home prices above pre-recession peaks while 40% of metros with at least 1M people experienced prices above pre-recession peaks. Combining those metros, home prices in Greeley CO were +87% above pre-recession peaks, Shreveport LA was +81% above, and Denver was +80% above. Austin +77% above, Fort Collins CO +76% above, Dallas-Fort Worth +72% above and Nashville prices were +71% above.
The average home seller experienced both quarterly and annual gains in profit margins to the tune of +33.9% with dollar gains reaching +$67,500 over their original purchase price in Q2 2019. In Q1 2019 the seller gain was $57,706 and in Q2 2018, the gain was $60,100. San Jose delivered the highest returns at +85% or $517,000, San Francisco at +71.6% or $376.000, Seattle at +65.6%, Salem OR at +62.3% and Salt Lake City at +60.7%.
Average home tenure reached 8.09 years, an increase of +4% from Q1 2019.
All-cash sales dropped to 25% of all sales from 27.7% in Q1 2019 and from 26.9% in Q2 2018. The highest share of all cash sales in metros with +1M people were Miami at 40.5%, Detroit at 36.7%, Birmingham AL at 34.9%, Tampa-St, Petersburg at 34.2% and Jacksonville FL at 33.9%.
The share of institutional investors in Q2 2019 was 2.2%, up from 1.9% in Q1 2019 and down from 2.4% in Q2 2018. The share of FHA buyers making low down payments (likely first-time buyers) was 11.6% in Q2 2019, up from 11.1% in Q1 and up from 9.9% in Q2 2018. Cities with the highest shares of FHA buyers were Riverside CA with 18.6%, Indianapolis with 18.4%, San Antonio with 18.2%, Providence with 17.8% and Kansas City with 17.6%.
The share of distressed sales continued its downward trend with 11.4% in Q2 2019.