For most Americans, the home they own is their largest investment and most valuable asset. These 10 metro areas have some of the highest home appreciation percentages over the past five years, reports Realtor.com®.
American home sellers who closed their sale during the first quarter of this year had owned their property for an average of 8.05 years, according to the National Association of Realtors®. This is a significant increase compared to the average of 4.21 years for properties sold from 2000 to 2007.
ATTOM Data Solutions reported that the five largest metro areas with the longest average years of ownership prior to selling in 2019 were Hartford, CT – 12.52 years; Boston, MA – 12.36 years; Providence, RI – 11.15 years; San Francisco, CA – 10.40 years; and San Jose, CA – 10.27 years.
On a national average, the most profitable home sales occurred in these four California metros: San Jose, San Francisco, Los Angeles, and Oxnard. Honolulu, HI, was fifth on the list.
During the Great Recession (2007-09), many properties lost equity as the housing market began falling. Short-term investors then started buying up properties that had fallen into foreclosure in order to flip them at a profit.
By contrast, flipping houses in today’s seller’s market is all about buying fixer-upper properties, making improvements and then reselling them to millennials and other first-time buyers.
Since the data firm CoreLogic first began tracking quarterly statistics on home flipping in 2002, the highest rate of home flipping as a percentage of all residential properties sold occurred during the first quarter of 2018 at 11.4 percent.
This upward trend continued last year with a higher rate in the fourth quarter than any previous fourth quarter – reaching almost 10.9 percent of all home sales. This marked the culmination of 12 consecutive quarters with residential flipping rates increasing on a year-over-year basis.
While flipping rates as a percentage of all homes sold vary widely across the U.S., the numbers tend to be highest in the Sun Belt. Eight of the top 10 metro areas are located in the southern half of the country: Birmingham, AL; Memphis, TN; Tampa, FL; Las Vegas, NV; Camden, NJ; Phoenix, AZ; Palm Bay, FL; Philadelphia, PA; Lakeland, FL; and Atlanta, GA.
Most of the metros where flipping has the highest rate of return on investment (ROI) are in areas that have a significant number of older homes to flip: Detroit, MI; Philadelphia, PA; Pittsburgh, PA; Cleveland, OH; Akron, OH; Baltimore, MD; Buffalo, NY; Wilmington, DE; Toledo, OH; and Milwaukee, WI.
IT’S A GOOD LIFE!!
Five Star award Winner 2011-2019 honoring the top 7% of real estate professionals in Oregon.
Millennials often get a bad rap for being unemployed, living with their parents, and putting off getting married or having kids, but, according to an article from Business Insider, there’s more to 18- to 30-year-olds than meets the eye!
Millennials do most of their shopping in physical stores. Sure, they are tech savvy and frequently shop online. But millennials haven’t completely abandoned stores and shopping malls. They like to touch and feel products before they buy them, and still appreciate the experience of shopping in a store. In fact, millennials still complete 54% of shopping in physical stores, according to the report.
Millennials save more money than the national average. “Contrary to popular rhetoric regarding a highly challenged consumer who may be burdened with debt and living ‘paycheck to paycheck,’ our survey of millennials suggests the majority of the demographic (74% of total responses) saves money every month compared to 26% who do not,” the report says.
Millennials are planning to buy homes. They are delaying home-buying and marriage and kids, but they are planning to get to those life milestones eventually. When asked what they are saving for, millennials said (1) a house, (2) a car, and (3) retirement.
Millennials aren’t just relying on Uber and Lyft to get around. They are actually buying cars. Like with homeownership, many millennials have delayed purchasing cars. But car buying among this demographic is rapidly rising and will continue to grow, according to the report. About 64% of millennials plan to buy a car in the next two years, and most of those who don’t plan to buy a car already own one, according to the data. Only 5% of respondents said car-sharing services like Uber and Lyft serve as a replacement for owning a car.
Five Star award recipient 2011-2017 honoring the top 7% of real estate professionals in Oregon.