U.S. single-family homes and condos sold for a median price of $255,000 in the second quarter of 2018, according to ATTOM Data Solutions, curator of the nation’s premier property database. This is part of its Q2 2018 U.S. Home Sales Report.
“Annual home price appreciation nationwide has now slowed for five consecutive quarters following a post-election spike to double-digit appreciation in the first quarter of 2017,” said Daren Blomquist, senior vice president at ATTOM Data Solutions. “Although home sellers are still in the driver’s seat of this housing market, moderating home price appreciation is good news for prospective homebuyers and signals that rising mortgage rates and other housing headwinds are cooling red-hot home price appreciation in some areas.”
In 80 of the 122 metros in Q2 2018, annual median home price appreciation decelerated from the previous quarter by 66 percent. These locations include Los Angeles, Chicago, Dallas-Fort Worth, Houston and Philadelphia.
In 42 of the 122 metros analyzed, annual home price appreciation accelerated from the previous quarter by 42 percent. These markets include New York, Washington D.C., Boston, San Francisco and Detroit.
For homes that sold for $1 million or more in Q2 2018, the median price per square foot increased by 5.4 percent from a year ago, accelerating from a 3.2 percent annual appreciation in the previous quarter, and from 3.4 percent annual appreciation during the same quarter in 2017.
For homes that sold for less than $1 million in the first quarter of 2018, the median price per square foot increased 6.5 percent from a year ago. However, that number decreased from 8.2 percent annual appreciation in the previous quarter. It was also down from 9.0 percent annual appreciation from the same quarter (Q2) in 2017.
Among the 122 analyzed metro areas, the largest year-over-year increases in median home prices were in San Jose, CA (up 25.0 percent), Flint, MI (up 23.7 percent), Seattle, WA (up 14.3 percent), Boise, ID (up 14.3 percent) and San Francisco, CA (up 14.2 percent).
The current median home price — $255,000 as of Q2 2018 — was 6 percent above the pre-recession peak of $241,648 in Q3 2005.
The markets that rose above their pre-recession peaks (79 of the 122, or 65 percent) in Q2 2018 include Houston, TX (79 percent above), Dallas Fort-Worth (78 percent above), Greeley, CO (76 percent above), Denver, CO (75 percent above), and San Antonio, TX (68 percent above).
In 43 of the 122 metros analyzed for median home prices (35 percent), 43 of them were still below pre-recession peaks. These include Atlantic City, NJ (36 percent below), York, PA (34 percent below), Salisbury, MD (21 percent below), Naples, FL (19 percent below), and Trenton, NJ (18 percent below).
Homeowners who sold in Q2 2018 had, on the average, owned their homes for 8.09 years. That’s an increase from an average home ownership of 7.91 years in Q1 2018 and up from an average home ownership of 7.83 years in Q2 2017.
In 22 of the 108 analyzed metro areas (20 percent), average homeownership declined. These markets include Sacramento, CA, Nashville, TN, Salt Lake City, UT, Honolulu, HW, and New Haven, CT.
The highest average home seller price gain since Q3 2007 has been achieved in Q2 2018: $58,000. That’s an average 30.2 percent return on the original purchase price, and up from an average 28.9 percent return in the first quarter. It’s also down from a recent peak of 30.8 percent in Q4 2017. The markets with the highest home-seller gains are San Jose, CA (116.6 percent), San Francisco, CA (85.0 percent), Seattle, WA (76.5 percent), Boston, MA (64.3 percent), and Portland, OR (62.1 percent).
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