All-Cash Investment Home Prices Rise 5.4 Percent, Surpassing Owner-Occupied Price Growth; The overall median sales price – including both owner-occupied and investment housing – increased 3.9 percent to $234,500 at the end of June

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All-Cash Investment Home Prices Rise 5.4 Percent, Surpassing Owner-Occupied Price Growth
The overall median sales price – including both owner-occupied and investment housing – increased 3.9 percent to $234,500 at the end of June.

IRVINE, Calif., July 19, 2016 – HomeUnion, an online real estate investment management firm, has released June 2016 data on the U.S. housing market. According to HomeUnion’s research, prices for investment properties purchased without leverage increased at a greater rate than traditional housing. All-cash prices jumped 5.4 percent year-over-year to a median price of $160,000, while the owner-occupied median sales price grew 3.3 percent to $253,600.

“As global economic upheaval weighed on investors decisions, single-family rental (SFR) investment homes remained a safe haven for many investors,” explains Steve Hovland, director of research for HomeUnion. “Prior to the recent Brexit vote and ongoing uncertainty in the global equity markets, investors parked capital in real estate for its stable returns, which has resulted in higher investment home prices.”

“Owner-occupied home prices are hovering near all-time highs, which is keeping many potential buyers on the sidelines and slowing price growth,” adds Hovland. Sales price increased at a healthy clip, indicating ongoing stability in the housing market, partially fueled by historically low interest rates. The overall median sales price – including both owner-occupied and investment housing – increased 3.9 percent year over year to $234,500 in June.

Here are more details on how investment home prices compare to traditional home prices:

Data

YOY Change
Total Median Sales Price

$234,500

3.9%

Owner-Occupied Median Sales Price

$253,600

3.3%

Investment Median Sales Price

$188,400

0.5%

Investment Cap Rate

5.2%

-40

basis points
Investment Cash Median Price

$160,000

5.4%

Cash Cap Rate

6.0%

-80

basis points
Investment Leveraged Median Price

$222,500

-2.7%

Leveraged Cap Rate

4.5%

-20

basis points

Source: HomeUnion Research Services
Disclaimer: Median sales price non-seasonally adjusted and based on transactions of single-family homes available through FHA financing (up to four units). Transactions above $30,000 were considered in the analysis. 

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 SFR properties. The company uses a combination of research and data-driven proprietary analytics to incorporate over 120M homes and 200,000 neighborhoods into their database, and then delivers its solutions to an on-the-ground infrastructure that currently serves 20 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.

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