|Sellers see home profits surge to decade high|
|Homeowners who made a sale in the last three months of 2017 saw their return on investment hit an average 28.8%.
ATTOM Data Solutions’ Home Sales Report shows that the average profit of $54,000 made by sellers was the highest since the third quarter of 2007; and increased from $53,732 in the previous quarter and from $47,133 in the fourth quarter of 2016.
“It’s the most profitable time to sell a home in more than 10 years yet homeowners are staying put longer than we’ve ever seen,” said Daren Blomquist, senior vice president at ATTOM Data Solutions. “While home sellers on the West Coast are realizing the biggest profits, rapid home price appreciation in red state markets is rivaling that of the high-flying coastal markets and producing sizable profits for home sellers in those middle-American markets as well.”
Profit in this market almost doubled
Sellers in San Jose saw the largest return on their investment (90.9%) but there were also large gains for other Californian markets: San Francisco (73.3%), Merced (64.6%) and Santa Cruz (59.8%).
Seattle was the only metro outside California to make the top 5 for ROI. Sellers there averaged a 64.4% return.
“The biggest story for the greater Seattle housing market in 2017 was persistently low inventory levels which continued to push home prices higher,” said Matthew Gardner, chief economist at Windermere Real Estate, covering the Seattle market.
US median home price at record high
The US median home price in 2017 was $235,000, up 8.3% from 2016 and setting a new all-time high. Annual home price appreciation in 2017 slowed slightly compared to the 8.5% in 2016.
Ocala, Florida (14.3%); Kansas City, Missouri (13.4%); San Jose, California (13.3%); Salem, Oregon (12.9%); and Nashville, Tennessee (12.5%) were all among the cities with the largest price increases.
Sr. Loan Officer/Sr. Loan Consultant