Homeowners who sold their homes in 2015 saw an average price gain since purchase of 11% ($20,378), the largest average price gain in the U.S. since 2007.

According to housing data firm RealtyTrac, based in Irvine, Calif., the eight-year high also marked the second consecutive year home sellers realized a price gain after six consecutive years of average price losses.

“With some local market exceptions, the 2015 home sales data paints the picture of a properly functioning U.S. housing market where homeowners can once again count on real estate as an appreciating asset — a long-touted axiom soundly debunked as ironclad truth between 2008 and 2013,” RealtyTrac Vice President Daren Blomquist said. “This return to consistent home price gains for sellers should reinforce confidence in real estate in 2016 and produce another year of solid sales volume as homeowners cash out their equity gains.”

Among 155 U.S. counties analyzed for the report, northern California produced the highest average price gains. San Mateo County, Calif., in the San Francisco metro area produced a 65% average home price gain. Alameda County, Calif., also in the San Francisco metro area, was close behind with a 64% average gain. Santa Clara County, Calif., in the San Jose metro area, reported a 63% average gain. Middlesex County, N.J., produced a 52% average gain and Multnomah County, Ore., in the Portland metro area, reported a 49% average gain.

The U.S. median home price at the end of 2015 was $206,500, up 10% from a year ago, RealtyTrac said. December was the 46th consecutive month with a year-over-year increase in the U.S. median home price. Among 87 major metropolitan statistical areas analyzed for the report, 79 (91%) posted a year-over-year increase in median home price at the end of 2015.

Among the nation's 46 markets with a population of at least 1 million, those with the biggest year-over-year increase in home prices were St. Louis (19%), Raleigh, N.C. (17%), Detroit (17%) and Tampa, Fla. (15%), with Denver, Seattle, San Jose and Providence, R.I., all posting increases of 13%.

“The drop in short sales, REOs, foreclosures, and institutional investors can all be attributed to the rapid price growth we continue to see in the greater Seattle area,” said Matthew Gardner, chief economist at Windermere Real Estate, covering the Seattle market. “Market values have simply increased to a point whereby it's unlikely that we'll have much distressed supply growth other than as a function of banks working through old inventory. This has also had an impact on distressed home prices which are unsurprisingly on the rise due to woefully low inventory levels and buyer competition.”

Houston largest of eight markets to post annual decrease in median home price

Eight markets among the 87 analyzed for the report (9%) posted a year-over-year decrease in median home sales price at the end of 2015, and Houston was the only market among the 46 with a population of at least 1 million to post a decrease. Average prices in Houston were down 2% in December from a year prior, RealtyTrac said.

The other seven markets posting a year-over-year decrease in median home price were Bridgeport, Conn. (8%), Winston-Salem, N.C., (6%), Dayton, Ohio, (5%), Augusta, Ga., (4%), Little Rock, Ark., (1%), Harrisburg, Pa., (1%) and York, Pa., (1%).

Markets with the biggest month-over-month decrease in median home price in December were Flint, Mich., (8%), Augusta, Ga., (8%), Tulsa, Okla., (6%), Provo, Utah, (5%), and Nashville (5%).

New all-time home price peaks in 2015 reported in 38% of markets

Among the 87 metropolitan statistical areas analyzed for the report, 33 (38%) posted new all-time highs for median home prices in 2015, and 20 of the 46 metro areas with a population of at least 1 million (43%) posted new all-time highs for home prices in 2015.

Among the 46 markets with a population of at least 1 million, those with home prices still furthest below previous peaks were Las Vegas (34% below previous peak in June 2006), Birmingham, Ala., (31% below previous peak in July 2007), Orlando, Fla., (31% below previous peak in June 2006), Miami (28% below previous peak in June 2007) and Chicago (27% below previous peak in July 2007).

Home sales volume reaches nine-year high

A total of 3.1 million U.S. existing single family homes and condos sold in 2015, up 7.5% from 2014 to the highest level since 2006, when there were 3.4 million single family and condo sales, according to the public record real estate deed data collected by RealtyTrac in nearly 1,000 counties nationwide.

Among 207 metropolitan statistical areas with at least 100 single family home and condo sales, 74 (36%) reached a nine-year high in sales volume in 2015 while 39 metros (19%) reached 10-year high, including Miami, Minneapolis-St. Paul, Tampa, Denver and Columbus, Ohio.

“South Florida real estate recorded one of the beat years since the Great Recession with a strong double-digit, year-over-year price gain,” said Mike Pappas, president/CEO of Keyes Company, covering the South Florida market. “We are seeing a pick-up in millennial buyers, who are taking advantage of the FHA low down payment options. We are continuing to see dramatic decline in the hangover distressed market. This all adds up to a healthy 2016.”

Distressed sales and short sales combined drop to eight-year low

Distressed sales (in foreclosure and bank owned) and short sales combined accounted for 17.3% of all sales in 2015, an eight-year low.

States with the highest share of distressed and short sales combined in 2015 were Illinois (28.1%), Florida (26.4%), Maryland (24.7%), Nevada (21.7%) and Connecticut (20.7%).

Among metropolitan statistical areas with a population of at least 200,000 those with the highest share of distressed and short sales combined were Atlantic City, N.J., (34.2%), Orlando (31.1%), Tallahassee, Fla., (31.1%), Rockford, Ill., (31.1%) and Gainesville, Fla. (30.8%).

Cash sale share drops to seven-year low

All-cash buyers accounted for 30.1% of all U.S. single family home and condo sales in 2015, down from 31.6% in 2014 and down from 35.6% in 2013 to the lowest level since 2008. The peak in share of cash sales was in 2012 at 36.3%.

States with the highest share of all-cash buyers in 2015 were Florida (50.4%), Hawaii (42.5%), Michigan (39.4%), Alabama (39.2%) and Georgia (38.9%).

Among markets with a population of at least 1 million, those with the highest share of all-cash sales in 2015 were Miami (55.2%), Tampa, Fla., (48.5%), Orlando (44.5%), Memphis (44.2%), Jacksonville, Fla., (42.4%), Detroit (41.1%), Las Vegas (37.9%), Raleigh, N.C., (37.7%), Atlanta (37.6%) and Cleveland (36.5%).

FHA buyer share reaches four-year high

FHA buyers (typically with low down payments) accounted for 15.7% of all U.S. single family home and condo sales in 2015, up from 12.5% in 2014 and up from 12.6 % in 2013 to the highest level since 2011. The previous peak in share of FHA buyers was 2009 at 23.9%.

States with the highest share of FHA buyers in 2015 were Utah (30.3%), Wyoming (27.3%), Indiana (27.2%), Idaho (26.4%) and New Mexico (24.4%).

Among markets with a population of at least 1 million, those with the highest share of FHA buyers in 2015 were Salt Lake City (30.8%), Riverside-San Bernardino, Calif., (26.4%), Kansas City (26.2%), Indianapolis (25.7%), San Antonio (24.4%), Houston (23.1%), Sacramento (21.6%), Phoenix (21.2%), Dallas (21.2%) and Las Vegas (21.0%).

To access the full report, click here.

Instant Insights /

Home Sale Gain Hits Eight-Year High

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