Key Highlights
- National median home price up +12.6% to $266,250
- Profits on home sales increase in 9 of 10 housing markets in 2020
- Return on investment gains up +34.7%
Nationwide, Seller Profits Hit $68,843
ATTOM Data Solutionsrecently released is Year-End 2020 US Home Sales Report. This report indicates that home sellers nationwide generated a profit of $68,843 on a typical home sale in 2020. This $68,843 represents a +34.7% return on investment (ROI) compared to the home’s original purchase price.
This +34.7% ROI is significant. In 2019, the home price gain was $53,700 and in 2018, the home price gain was $48,500. Such profit increases were generated in more than 90% of housing markets with enough data to analyze. Likewise, this +34.7% ROI was the highest ROI level in the US since at least 2005, according to ATTOM.
Home Prices in 2020 Jump +12.6%
Not only did ROI jump in 2020, national home prices also jumped a record +12.8% to $266,250. Todd Teta, chief product officer with ATTOM,said, “Last year market 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. 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…in the annals of history, there will be few years recorded as better for sellers and more challenging for buyers.”
Sellers in Western States Reaped Highest Returns on Investment
In metros with populations of +200,000, sellers living on or near the West Coast enjoyed the highest ROI. Of the top 10 metro areas with the highest ROIs, all were in the West.
- San Jose CA – +87.3% ROI
- Seattle WA – +72.1%
- Salem OR – +69.6%
- Spokane WA – +69.2%
- San Francisco CA – +68.2%
Housing Market Boom that Began in 2012 Continued for 9th Year
All of these home price and return on investment increases occurred at a time when the COVID pandemic wiped out a large portion of jobs, businesses and the US economy. The saving grace for the housing industry in 2020 was a rash of buyers who were relatively unaffected by job and income losses, able to essentially chase after dwindling inventories, take advantage of record-low interest rates, and able to purchase homes with soaring prices.
Thanks to ATTOM Data Solutions.
