Many U.S. metro market home prices at new peak

Spokane-area median sales exceed prerecession levels

Median home prices in 57 of 105 metropolitan statistical areas- including the Spokane-Spokane Valley MSA- were above their prerecession home price peaks in the first quarter of 2018, according to an analysis in a report issued by Irvine, Calif.-based ATTOM Data Solutions.

The median home price in the Spokane-Spokane Valley metro area for the first three months of 2018 was $208,000, which is nearly 19 percent higher than the prerecession quarterly peak of $175,000, according to ATTOM’s “Ql 2018 U.S. Home Sales Report.”

The report also notes the Spokane-area’s strong year-over-year increase in home prices.

The Spokane Association of Realtors reported separately that the median price for homes sold through the association’s Multiple Listing Service in the first three months of 2018 was 9-4 percent higher than the median price for homes sold in the year-earlier period.

ATTOM Data Solutions is a real estate data and technology company formerly known as RealtyTrac LLC.

The Ql report says that the nationwide median home price of $240,000 in the first quarter of 2018 was less than 1 percent below its prerecession peak of $241,500 in the third quarter of 2005, but still up 9.1 percent from a year ago.

Metro areas with first-quarter 2018 median home prices the furthest above their prerecession peaks were Houston, up 69 percent; Dallas-Fort Worth, up 67 percent; Denver, up 62 percent; San Jose, Calif., up 60 percent; and San Antonio, up 57 percent.

Other major metros with at least 1 million people and with first-quarter median home prices at least 30 percent above prerecession peaks were Nashville, Tenn.; Austin, Texas; Salt Lake City; Raleigh, N.C.; Indianapolis; and Oklahoma City.

“Rising interest rates and recently enacted tax reform that removed some tax incentives for homeownership were not enough to cool off red-hot home price appreciation in many parts of the country, with 30 of the 105 local markets analyzed posting double-digit gains in median home prices in the first quarter,” says Daren Blomquist, senior vice president at ATTOM Data Solutions. “Home prices are still below prerecession peaks in 46 percent of local markets, but nearly one-third of even those markets posted double-digit home price appreciation in the first quarter.”

Bridegport-Stamford-Norwalk, Conn., where first quarter home prices are still 25 percent below prerecession peak, is the MSA furthest behind in post-recession home-price recovery.

Others cities still significantly lagging prerecession peaks include New Haven, Conn. (22 percent below); Allentown, Penn. (21 percent below); Philadelphia (20 percent below); and Hartford, Conn. (19 percent below).

Major metros with at least 1 million people and with first-quarter median home prices at least 15 percent below prerecession peaks include Chicago; Baltimore; Tucson, Ariz.; Las Vegas; and New York-Newark-Jersey City.

According to the report, MSAs posting the biggest year-over-year increase in median home prices were San Jose; Flint, Mich.; Spokane-Spokane Valley; Reno, Nev.; and Seattle.

Ingo Winzer, founder and president at Local Market Monitor, says, “In 2018 and in the next couple of years, well see more markets where home prices are entering boom territory. It’s strange to say after so many years of stagnation, but buyers will want to beware right now in Denver, Miami, the L.A. area, Austin, San Francisco, Tampa, and Seattle, where home prices are already 25 percent higher than they should be.”

Still, Winzer isn’t saying home prices have peaked even in those markets.

“We don’t think a bust is imminentin fact, we think prices in these markets will keep going up for several years-but dynamics like this have always ended badly in the past. If you’re thinking of selling, this year or next would be a good time. If you’re thinking of buying, either have a very short-term outlook or a very long one.”

U.S. homeowners who sold in the first quarter of 2018 had been in their homes an average of eight years, down 2 percent from 8.14 years in the fourth quarter of 2017, but still up from 7.69 years in the first quarter of 2017.

Those sellers realized an average home price gain since purchase of $53,369, down from an average gain of $54,000 in Q4 2017 but still up from an average gain of $45,000 in Ql 2017. The average home seller gain in Ql 2018 represented an average 29.5 percent return as a percentage of original purchase price, down from a 29.8 percent return in the previous quarter but still up from a 25.7 percent return in Ql 2017Sales

to buyers using Federal Housing Administration-backed loans-typically first-time homebuyers-accounted for a four year-low of II.9 percent of all single-family home and condo sales in Ql 2018.

Distressed home sales-including bank-owned real estate sales, third-party foreclosure auction sales, and short sales-accounted for 14.7 percent of all single-family home and condo sales in Ql 2018, up from 13.6 percent in Q4 2017, but still down from 16.9 percent in Ql 2017.

All-cash purchases represented 30 percent of all single family home and condo sales in Ql 2018, up from 28.7 percent in Q4 2017 but down from 31.5 percent in Ql 2017.

Sales to institutional investors accounted for 1.7 percent of all single-family home and condo sales in Ql 2018, down from 3.6 percent in Q4 2017 and down from 2 percent in Ql 2017 to the lowest level as far back as data is available, Ql 2000.

This article provided by NewsEdge.