In 90% of housing markets in 2020, sellers’ profit increased dramatically from previous years.
According to ATTOM Data Solutions’ recent report, sellers had a gain of $68,843 on an average sale, an increase of more than $15,000 year-to-year, and more than $20,000 from 2018. This is the highest level since 2005, with a 34.7% return of investment for sellers, up from 29.4% in 2019 and 27.2% in 2018. This is the highest percentage since 2006, when sellers saw a ROI of 37.3%.
The national home price, which averaged $266,250, saw an increase of 12.8% year-to-year, which represented a record high, the report found.
“Last year marked a unique year in the history of home prices and profits in the United States. A once-in-a-century health crisis tore through much of the nation’s economy but seemed to have the opposite effect on the housing market,” said Todd Teta, chief product officer at ATTOM Data Solutions. “Demand remained strong as people who could afford the space and relative safety of single-family homes did just that, aided by super-low mortgage rates and a strong stock market. But they went after a narrowing supply of housing stock, so prices soared and so did seller profits. While it’s unclear how long that will last, in the annals of history, there will be few years recorded as better for sellers and more challenging for buyers.”
Two Pennsylvania cities made the list for the smallest price gains in housing. According to the report, in Harrisburg, home prices rose only 2%, while Pittsburgh saw only a 3.2% increase in housing prices. Across the U.S., 69% of 132 metro areas saw increase of 10% or more.