Widespread home price appreciation has pushed the US median home price to a new high.
An analysis from ATTOM Data Solutions reveals the record high of $266,000 in the second quarter of 2019, a 10.8% rise from the previous quarter and a 6.4% increase year-over-year.
"As warmer weather brings a rush of house hunters to the market, the latest spike in median home prices marked the largest quarterly increase since the second quarter of 2015 and the third biggest increase since the market started climbing out of the Great Recession in 2012," said Todd Teta, chief product officer at ATTOM Data Solutions.
Prices increased in 89% of markets analyzed – or 133 of 149 metros – led by Atlantic City, New Jersey (16.0%); Boise City, Idaho (14.0%); Chattanooga, Tennessee (13.9%); Mobile, Alabama (11.2%); and Madison, Wisconsin (10.8%).
"However, in looking at historical trends, the second quarter of every year has always shown a quarterly increase, going as far back as 2005. So, with mortgage rates dipping to new lows, it's no surprise that people were wanting to buy a home, even if prices were at their peak. We expect to see milder home prices in the coming quarters," added Teta.
Record homeowner tenure
Homeowners are staying in their homes longer, again a new record, with the report showing that those who sold in the second quarter had owned an average of 8.09 years, up 3% from last quarter and up 4% from Q2 2018.
Sellers also realized an average gain of $67,500, up from $57,706 in Q1 2019 and up from an average gain of $60,100 in Q2 2018. The gain meant a 33.9% return as a percentage of original purchase price.
Meanwhile, Total distressed sales accounted for 11.4% of all single family and condo sales in Q2 2019, down from 14.0%in the previous quarter and up less than 1% from the same time last year.
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