According to ATTOM’s just released Q1 2023 U.S. Home Sales Report, profit margins on median-priced single-family home and condo sales across the U.S. decreased to 44.2 percent as home prices stayed flat or kept declining around most of the nation.
ATTOM’s latest home sales analysis shows that the drop-off in typical profit margins, from 48.7 percent in Q4 2022, marked the third straight quarterly decrease nationwide and resulted in the lowest investment return since mid-2021. The report notes that drop-off came as the national median home price rose just 1 percent quarterly, to $321,135, and values commonly went down in almost three-quarters of major housing markets around the country.
The report found that the typical investment return nationwide did remain high in the first quarter – almost double where it stood four years ago, but the margin was off by 12 points from the peak of 56.1 percent hit in Q2 2022.
Also, according to ATTOM’s latest home sales report, homeowners who sold in Q1 2023 had owned their homes an average of 5.59 years – down from 5.81 years in Q4 2022 and 5.68 years in Q1 2022, to the lowest point since mid-2011.
The report noted the average tenure decreased from Q1 2022 to the same period this year in 56 percent of metro areas with sufficient data. The largest declines as stated in the report were in Atlantic City, NJ (tenure down 27 percent); Dayton, OH (down 19 percent); Tallahassee, FL (down 16 percent); Chattanooga, TN (down 15 percent) and St. Louis, MO (down 14 percent).
The Q1 2023 sales report also noted that 14 of the 15 longest average tenures among sellers in Q1 2023 were in the Northeast or West regions – led by Honolulu, HI (8.21 years); Manchester, NH (8.17 years); Kahului-Wailuku, HI (7.93 years); Bellingham, WA (7.87 years) and New Haven, CT (7.29 years).
While the smallest average tenures among first-quarter sellers were in Lakeland, FL (1.22 years); Memphis, TN (2.92 years); Cleveland, OH (3.83 years); Tucson, AZ (3.95 years) and Salem, OR (4.08 years).
In this post, we dig deep into the homeownership tenure data behind our Q1 2023 home sales report to unveil the top 10 U.S. metro areas with greatest year-over-year increases in average homeownership tenure. Those top metros include: Urban Honolulu, HI (tenure up 25 percent); Provo-Orem, UT (up 19 percent); Ogden-Clearfield, UT (up 13 percent); Merced, CA (up 13 percent); Medford, OR (up 12 percent); Sacramento–Roseville–Arden-Arcade, CA (up 12 percent); Denver-Aurora-Lakewood, CO (up 12 percent); Visalia-Porterville, CA (up 10 percent); Portland-Vancouver-Hillsboro, OR-WA (up 10 percent); and Salt Lake City, UT (up 10 percent).
ATTOM’s Q1 2023 home sales report also noted that median home prices in Q1 2023 decreased or remained the same compared to the prior quarter in 75 percent of U.S. metros, although they were still up annually in 73 percent.
According to the report, the biggest decreases in median home prices from Q4 2022 to Q1 2023 were in Toledo, OH (down 13.7 percent); Trenton, NJ (down 13.3 percent); Pittsburgh, PA (down 11.1 percent); Detroit, MI (down 9.5 percent) and San Francisco, CA (down 8.8 percent).
Want to learn more about average homeownership tenure and other home sale trends in your area? Contact us to find out how!
