by Bill McBride on 12/08/2014 04:06:00 PM
Monday, December 08, 2014
FNC released an interesting report today: Larger Homes Show Faster Appreciation than Smaller Homes Over the Past Decade
According to FNC, in 2004, about half of existing home sales were homes held 5 years of less. In 2014, only about one-fourth of home sales were held 5 years or less.
And in 2004, just 10% of home sales were held for more than 15 years. In 2014, that has doubled (more long term owners are selling now).
From FNC on the composition of existing home sales:
• A 10-year comparison of ownership duration on existing-home sales reveals a significant decline in the turnovers of homes held for short periods.Click on graph for larger image.
• 2004: 11.9% held for 18 months or less & 18.1% between 18-36 months• Rising share of homes held for longer periods:
• 2014: 5.8% held for 18 months or less & 7.6% between 18-36 months
• 2004: 5.7% for 12-15 years & 10.0% above 15 years• Median ownership duration currently stands at eight years, double the number from the pre-2009 periods.
• 2014: 9.6% for 12-15 years & 19.3% above 15 years
This graph from FNC shows existing home sales by duration of ownership for 2004 and 2014.
Fewer flippers - and more long term owners selling.