“They” say that owning real estate is a good hedge on inflation.
Check out Zillow’s new report on home-sellers who are reaping rewards from selling their homes in the nation’s hottest markets and then let me know your thoughts on homeownership and inflation.
The median price increase between the sales from home sellers was nearly $39,000. Typically, these home sellers lived in their homes for just more than 8 years. (Do the math…if most sellers bought their homes 8 years ago, they purchased their homes just prior to the market bottoming out.)
Certain metros around the country delivered more cash to their home sellers than others. For example,
- Nashville brought a +34% change or $52,000
- Portland brought a +37% change or $87,000
- San Jose brought a +53% change or $296,000
- Seattle brought a 44.7% change or $123,000
- Dallas brought a 31.4% change or $137,000
- Los Angeles brought a 33.1% change or $137,000
- San Francisco brought a 45% change or a $222,000
- San Diego brought a 27.3% change or $107,500
You’ll note that often, the proceeds from a home sale are enough to put a down payment on a new home or even buy a new home outright if the seller chooses to live in a “less” hot metro area. Now matter where these home sellers might purchase their next home, profits from their just sold home give them a big advantage over first time buyers who are coming into the market with smaller down payments.
Aaron Terrazas, Zillow’s chief economist, summed up the report by saying, “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.”
Click here for a list of metros, percentage changes and proceeds.