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All-Cash Investment Sales Jump 18.3 Percent in January

Owner-occupied home prices also increased 6.1 percent to $246,000.

IRVINE, Calif., Feb. 21, 2017 — HomeUnion, an online real estate investment management firm, has released January data on home sales prices. In the January 2017 HomeUnion Home Sales Report, the data indicates that both investment home and owner-occupied home sales soared to $227,000 last month, marking year-over-year growth of 8.7 percent. All-cash investors led the charge for single-family real estate as they sent the investment median cash price up 18.3 percent to $167,400. Investors who used leverage to acquire single-family rentals (SFRs) also contributed to the growth of the real estate market as the investment median sales price jumped 12.9 percent to nearly $200,000, according to HomeUnion Research Services.

“Expect pricing to continue to accelerate in the months ahead,” says Steve Hovland, director of research for HomeUnion. “Demand for SFRs will remain robust throughout 2017. Vacancy is forecast to tighten, reaching the lowest level of the current cycle. According to the U.S. Census Bureau, 805,000 households were formed in 2016. Of those, 434,000 were renter households. Low inventory, high debt burdens and rising interest rates will limit the number of first-time homebuyers to 35 percent of the market, below the long-term trend of 40 percent.”

January National Home Price Trends

Data Year-Over-Year
 Total Median Sales Price $227,000 8.7%
Owner-Occupied Sales Price $246,000 6.1%
Investment Median Sales Price $198,400 12.9%
Average Investment Cap Rate 5.6% -90 Basis Points
Investment Median Cash Price $167,400 18.3%
Average Cash Cap Rate 6.4% -100 Basis Points
Investment Median Leveraged Price $237,700 6.5%
Average Cap Rate 4.7% -60 Basis Points

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About HomeUnion

HomeUnion is an online real estate investment management firm. Based in Irvine, Calif., it provides all the services needed for individuals to invest remotely in single-family rental (SFR) properties. The company uses a combination of research and data-driven proprietary analytics to incorporate over 110 million homes and 200,000 neighborhoods into their database, and then delivers its solutions to an on-the-ground infrastructure that currently serves 11 locations. HomeUnion’s role spans the lifecycle of the investment transaction: identifying sound investments, handling all aspects of acquisition, maximizing income, protecting asset value, and selling the asset when the time comes.

Media Contact:
Stacey Corso
Communications Manager, HomeUnion
stacey.corso@homeunion.com
415.672.6460

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Existing home sales jump in January! Feb 23 2017 - 2:02 AM
[…] All-Cash Investment Sales Jump 18.3 Percent in January […]

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