IRVINE, CA—Although homeowners who sold in the first quarter realized the highest average price gains in nearly a decade, they're keeping their homes longer. ATTOM Data Solutions said Thursday that homeowners who sold in Q1 had owned their properties for an average of 7.97 years—a slight decrease from the record-high tenure of eight years set the previous quarter but still well above the average of 4.26 years between 2000 and 2007.

With a gain of $44,000—an average premium of 24%, the highest since Q3 '07—on a single-family home, “the first quarter of 2017 was the most profitable time to be a home seller in nearly a decade, and yet homeowners are continuing to stay put in their homes longer before selling,” says Daren Blomquist, SVP with ATTOM. “This counterintuitive combination is in part the result of the low inventory of move-up homes available for current homeowners, while also perpetuating the scarcity of starter homes available for first-time homebuyers.”

The highest average price gains in terms of dollar amounts and ROI during Q1 occurred on the West Coast. The San Jose, CA metro area saw a price gain of $356,000, representing a return of 71%, while the San Francisco area also came in second for both price gain and ROI, at 4276,750 and 65%, respectively. Los Angeles was third for dollar amount at an average of $187,500, whle Seattle ranked third for ROI at 56%.

ATTOM's findings dovetail with the latest report from S&P Dow Jones Indices, issued on Tuesday. The S&P CoreLogic Case-Shiller US National Home Price NSA Index, covering all nine census divisions, reported a 5.8% annual gain in February, up from 5.6% last month and setting a 32-month high. The 10-City Composite posted a 5.2% annual increase, up from 5.0% the previous month, while the 20-City Composite reported a year-over-year gain of 5.9%, compared to 5.7% in January.

“Housing and home prices continue to advance,” says David M. Blitzer, managing director and chairman of the index committee at S&P Dow Jones Indices. “The S&P Corelogic Case-Shiller National Home Price Index and the two composite indices accelerated since the national index set a new high four months ago. Other housing indicators are also advancing, but not accelerating the way prices are.”

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