Homeowners are profiting when selling—and their average earnings haven’t been this high since 2007.
At the close of 2017, the average home seller gained $54,000, or a 29.7 percent return on investment (ROI), in the transaction, according to ATTOM Data Solutions’ recently released Year-End and Q4 2017 U.S. Home Sales Report. Contradictory, however, is their length of stay: 8.18 years—the longest since 2000.
“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,” says Daren Blomquist, senior vice president at ATTOM Data Solutions.
The best rates of ROI are clustered on the West Coast, the report reveals. The San Jose, Calif., market has the highest return, at 90.9 percent, followed by San Francisco, Calif., at 73.7 percent, Merced, Calif., at 64.6 percent, Seattle, Wash., at 64.4 percent, and Santa Cruz, Calif., at 59.8 percent.
Appreciation, generally, improves the potential for profit. Annual appreciation has been highest in Ocala, Fla. (+14.3 percent), Kansas City, Mo. (+13.4 percent), San Jose (+13.3 percent), Salem, Ore. (+12.9 percent), and Nashville, Tenn. (+12.5 percent), the report shows. Additional areas are considerably growing, as well: Las Vegas, Nev. (+12.3 percent); Salt Lake City, Utah (+10.9 percent); Seattle (+10.8 percent); and Orlando and Tampa-St. Petersburg, Fla. (both +10.7 percent).
“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,” Blomquist says.
Source: ATTOM Data Solutions
Suzanne De Vita is RISMedia’s online news editor. Email her your real estate news ideas at email@example.com. For the latest real estate news and trends, bookmark RISMedia.com.