U.S. Median Home Sales Price Reaches a New All-Time High at $248k
ATTOM Data Solutions just released its Q3 2017 U.S. Home Sales Report, revealing that distressed home sales—including bank-owned (REO) sales, third-party foreclosure auction sales, and short sales—have fallen to the lowest level since 2007.
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According to Daren Blomquist, senior vice president at ATTOM Data Solutions, “Distressed sales nationally are now the exception rather than the rule, and we would expect the distressed sale share to return to the pre-recession norm of single-digit percentages within the next year given the current downward trajectory. Distressed sales have become more localized in nature, with some of the biggest increases from a year ago in markets experiencing regional economic weakness or a natural disaster event that has triggered a jump in foreclosure activity.”
Related: 5 Risks of Buying Rental Properties in Declining Markets
5 Markets With the Largest Share of Distressed Sales
This study looked at markets with populations of 200,000 or more with at least 100 distressed sales over the quarter. The areas with the largest shares of distressed sales included:
- Atlantic City, New Jersey (35.2 percent)
- McAllen-Edinburg, Texas (24.5 percent)
- Montgomery, Alabama (23.7 percent)
- Akron, Ohio (23.2 percent)
- Youngstown, Ohio (22.5 percent)
5 Markets With the Smallest Share of Distressed Sales
Conversely, these areas saw a proportionately small amount of distressed properties sold:
- San Jose, California (3.1 percent)
- Salt Lake City, Utah (3.3 percent)
- Austin, Texas (4.1 percent)
- San Francisco, California (5.2 percent)
- Provo-Orem, Utah (5.5 percent)
What About Your Local Market?
Median Home Sales Price Reaches a New All-Time High
The third quarter of 2017 saw a new all-time high for the median sales price nationwide—coming in at $248,000—an increase of 10 percent from a year ago and 3 percent above the pre-recession high in Q3 of 2005.
Related: How the “Second Wave of Suburbanization” Will Change Housing Markets as We Know Them
A whopping 55 metro areas out of 126 saw new all-time highs reached during the quarter, with 66 percent of metro areas experiencing median home prices that exceed pre-recession peaks. These metro areas include Los Angeles, Dallas, Atlanta, Detroit, and Seattle.
The question that arises, of course, is whether markets prices have risen to unsupportable levels indicative of a possible crash.
What do you think?
Let me know what conclusions you draw from this data with a comment!