Single family home and condo sellers in the first half of 2015 sold for more above their purchase price in the first half of this year than any time since prices were at the peak of the boom.
Homes sold for an average of 13 percent above their original purchase prices, the highest average percentage in home price gains realized by sellers since 2007, when it was 30 percent, according to RealtyTrac.
Major markets where sellers in the first half of 2015 realized the biggest average home price gains were San Jose, California (41 percent); San Francisco (37 percent); Denver (29 percent); Portland (25 percent); Los Angeles (25 percent); and Seattle (20 percent).
“Sales activity has been strong this year and the metrics point to a solid foundation for steady growth. Growing boomerang buyer interest and first time buyer participation combined with smarter lending requirements are fostering a sustainable market,” said Mark Hughes, chief operating officer with First Team Real Estate, covering the Southern California market. “Lower investor, cash, and distressed activity are three reliable indicators that peripheral buying and selling activity is settling back down and the traditional owner occupied residential market is back on solid ground and healthy.”
There were six major markets where sellers in the first half of 2015 on average sold below their original purchase price: Chicago (7 percent below); Cleveland (7 percent below); Hartford, Connecticut (3 percent below); Jacksonville, Florida (2 percent below); St. Louis (1 percent below); and Orlando (1 percent below).
Zillow and Case-Shiller both reported strong appreciation in their first quarter reports, Zillow at 5.2 percent year over year for its 20-city composite and Case-Shiller at 5.0 percent.