Profits on U.S. home sales hit 8-year high

by Ryan Smith06 Nov 2015
The third quarter was the most profitable time to sell a home in the U.S. in eight years, according to a new report from RealtyTrac.

Homeowners who sold their homes during the third quarter saw an average price gain of $40,658, or 17%, according to RealtyTrac. That’s the highest average price gain since the third quarter of 2007. But those who sold may have done so at just the right time, said RealtyTrc vice president Daren Blomquist.

“An increasing number of homeowners in 2015 have been cashing out the home equity they’ve gained during the housing recovery of the past three years,” Blomquist said. “That may be a good decision because the data points to a plateauing market going forward. Home price appreciation is slowing, a trend that will continue if interest rates rise in the coming months as expected. Meanwhile the threat of rising interest rates combined with lowered premiums for buyers using FHA loans is spurring more demand.”

The report also showed that 23.4% of all single-family home and condo sales with financing in the third quarter made use of Federal Housing Administration loans. that’s up from 23.2% in the second quarter and 17.9% in the third quarter of 2014. The share of homes purchased with FHA loans last quarter was the highest since the second quarter of 2012.

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