Sellers are winning.
According to an analysis recently released by Zillow, the average homeowner pocketed $38,856, or a 20.8 percent return, when selling, having had their home for 8.4 years.
“In a housing market that’s been plagued by low inventory and increasing demand, homeowners in the nation’s hottest markets have been able to cash in when they sell their homes,” says Aaron Terrazas, senior economist at Zillow. “A home is typically the biggest investment someone makes, and it’s paid off for longtime owners in many markets across the country. Today’s typical seller bought in 2010, just before the national housing market bottomed out in 2012. Of course, these sellers typically are buyers, as well, but the profits from the sale of their former home give them an advantage over first-time buyers who may be coming in with smaller down payments.”
The earnings jump in pricey San Jose, where the average homeowner gains a 53.8 percent return, or $296,000, having had the home for 8.9 years. Homeowners are also profiting richly in San Francisco, with a 45.5 percent return, or $222,000, over 8.5 years, and in Los Angeles, with a 33.1 percent return, or $137,000, over 9.1 years.
In 20 of the largest markets:
For more information, please visit www.zillow.com.
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.