Key Highlights
- Home sellers nationwide realized a home price gain of $67,100 in Q1 2020, according to Attom Data Solutions
- This $67.100 profit represented a +33.7% ROI
- Median price for single-family homes and condominiums rose to new high of $265.900, a +2.9% quarterly gain and +11.3% y/y gain
This is the first report on Q1 2020 home sales and prices we’ve done since the COVID pandemic took over. Why now? Because if nothing less, the before-COVID sales numbers and prices may be very informative reference points for you in an after-COVID market reality with almost unimaginable numbers of job losses, unemployed worker and mortgages in forbearance.
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One thought from Sam Zell, a billionaire real estate investor, who said on Bloomberg Television this week, “…there are no transactions happening now because sellers have to get over the prices they had in their heads seven weeks ago…those seven week old prices are irrelevant now…”
So, that being said, Attom Data Solutions’ Q1 2020 US Home Sales Report released this week indicated that home-seller profit represented a +33.7% ROI compared to the original purchase price of the home. Here are some specifics:
- The typical profit on a home was $67,100 during Q1 2020.
- The median price for single-family homes and condos rose to a new high of $265,900, up +2.9% quarterly and +11.3% y/y
- This annual increase was the largest since Q3
- Owners who sold in Q1 2020 had owned their homes an average of 8.01 years
- Distressed home sales represented 9.9% of all single-family home and condo sales in Q1 2020
- This latest share of distressed home sales was the lowest since Q4 2006
- This latest share of distressed home sales represented about 20% of the peak level of 45.2% distressed sales in Q1 2009
Attom Data Solutions pointed to the top 10 metros with the greatest home seller dollar gains in Q1 2020:
- San Jose-Sunnyvale-Santa Clara CA – +$473,500
- San Francisco-Oakland-Hayward – +$331,000
- Los Angeles-Long Beach-Anaheim – +$232,000
- San Diego-Carlsbad – $184,500
- Seattle-Tacoma-Bellevue – $182,686
- Oxnard-Thousand Oaks-Ventura – $174,205
- Urban Honolulu – $174,000
- Boston-Cambridge-Newton – $138,625
- Portland-Vancouver-Hillsboro – $134,863
- Salt Lake City – $130.264
The top 10 metros with the highest ROI in Q1 2020 included:
- San Jose – +81.8%
- San Francisco +67.7%
- Seattle – +63.6%
- Spokane – +61.8%
- Boise – +59.1%
- Salt Lake City – +59.0%
- Stockton-Lodi – 55.7%
- Los Angeles-Long Beach-Anaheim – +54.6%
- Provo-Orem – +54.0%
- Ogden-Clearfield – +53.4%
Now, your job is to be familiar with these before-COVID numbers and put them into perspective for your clients in this now after-COVID world to help your sellers live and sell their homes in the present tense.
Thanks to ATTOM Data Solutions and Bloomberg Television.
Also read: What’s Coming Next? “The Worst Economy in Our Lifetime”, Pandemic Erodes Wealth of 500,000 Millionaires Plus Everyone Else’s, Let’s Hope the 2nd Go-Around with PPP is Better than the 1st
