Home sellers sold their homes last month for $30,500 more than they purchased them for, representing a 17% gain that was the largest since December 2007, RealtyTrac reported in its March and first quarter home sales report.
RealtyTrac reported in March, home sellers made the most on their sales in San Francisco, with a 72% gain. That was followed by San Jose, Calif., Boulder, Colo., Prescott, Ariz., and Los Angeles.
“Home sellers in many markets are now seeing average price gains close to or above what home sellers experienced during the last housing boom,” Daren Blomquist, senior vice president for RealtyTrac, said. “That should encourage more homeowners to take advantage of the prime seller's market and list their homes for sale this year.”
RealtyTrac reported there were 19 markets in March in which homes sold for less than they were purchased for. Rockford, Ill., led the way, with homes selling for 11% less than they were purchased for, the firm said. That community was followed by Winston-Salem, N.C., Cleveland, Columbia, S.C., and Wilmington, N.C.
Home sellers who sold last month had owned their homes for an average of 7.67 years, up 4% from a year ago.
The median price of homes and condos was $210,000 in March, an increase of 9% from February and 11% from a year ago.
Seven markets reached new all-time price peaks in March: Boulder, Colo., Denver, Portland, Ore., Fort Collins, Colo., Austin, Texas, Greeley, Colo., and Cincinnati, Ohio.
On the other hand, 17% of the markets suffered a year over year price decrease, including Washington with a 7% drop.
Distressed sales, including bank-owned homes, foreclosure sales and short sales, accounted for 18.2% of sales during the first quarter of the year. That was up from 17.2% in the previous quarter. The percentage of distressed home sales peaked at 44% during the first quarter of 2009.
All-cash sales amounted to 31.8% of U.S. home sales during the first quarter – down from 32.8% during the previous quarter.
Buyers using FHA loans accounted for 15.2% of all sales during the quarter, up from 14.8% in the previous quarter.
Financial institutions already are taking advantage of the market, according to Blomquist.
“Given that bank-owned homes are selling at a median price that is 40% below the overall median sales price nationwide, the uptick in distressed sales combined with affordability constraints are contributing to faltering home price appreciation in some markets – most notably the bellwether markets of Washington, D.C. and San Francisco,” Blomquist added.
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