IRVINE, Calif., Oct. 20, 2016 /PRNewswire/ -- HomeUnion, a leading real estate firm that provides all the services investors need to buy, sell and manage real estate online, has released September 2016 data showing that median sales prices for investment housing and owner-occupied housing continue to accelerate. According to the monthly HomeUnion Home Sales Report, median prices increased 17 percent year-over-year to $269,300, the 55th month of year-over-year growth in the residential real estate sector since 2012. All-cash buyers pushed prices up nearly 33 percent in September to $211,400. In addition, average cap rates for both financed and non-leveraged single-family rentals (SFRs) dropped 90 basis points to 5.2 percent.
Median prices for rental properties in markets hit the hardest by the recession completely bottomed out in 2012, and little inventory remains in the sub-$150,000 range across several metros nationwide. "With a paucity of lower-priced inventory, SFR investors have started to target higher-priced assets," explains Steve Hovland, director of research for HomeUnion. "The elevated price of all-cash sales is indicative of investors' uneasiness with lower-risk, dividend-yielding assets. More buyers are willing to lock in returns over the next five to seven years because they doubt the Fed's forthcoming monetary policy will greatly benefit them. Investors are frustrated by sitting on cash, and each passing meeting with inaction from the Fed casts further doubt about how much fixed-income investments will improve over the short term. Therefore, the attractiveness of SFRs is getting amplified."
Below is a complete breakdown of national home prices trends in September: