Profits from Home Sales Are Higher than They’ve Been in More than a DecadeMarch 30, 2018
The average profit from home sales in the fourth quarter of 2017 was $54,000, according to researchers at ATTOM Data Solutions. This is higher than it’s been in more than a decade and amounts to an average return on investment (ROI) of 29.7%,
For anyone on the fence about selling, this is a sure time that now is a good time to sell. Daren Blomquist, ATTOM’s senior vice president stated in a news release: “It is the most profitable time to sell a home in more than 10 years yet homeowners are staying put longer than we’ve seen.”
On Average, Homeowners Are Staying Put Longer
Those who sold their homes in Q4 2017 had owned their homes on average for just over eight years. This figure was slightly up from 7.78 years in Q4 2016, but the longest on record since early 2000 when this data was first collected,
Who Made the Biggest Profits from Home Sales?
While sellers in areas like San Jose and San Francisco on the West Coast had by far the biggest profits in the nation, Boston sellers had the biggest average profit of sellers on the East Coast. The average profit on home sales in Boston was $141,800 or a 54.4% ROI. The Miami-Fort Lauderdale-West Palm Beach metro was next with an average profit of $75,000 or $43.4%.
Sellers in the Washington, D.C.-Arlington-Alexandria metro made out pretty well also. According to the study, they made an average profit of $50,055 or an average 16.1% ROI.
For Baltimore-Columbia-Towson, Maryland, the average home profit was $37,000 with an average ROI of 19.2%.
Home Sales of Distressed Properties Lowest in More than 10 Years
More good news is that the home sales of distressed properties hit a 10-year low last year. Bank-owned (REO) sales, foreclosure and short sales together accounted for only 14% of single family home and condominium sales in 2017.
However, in the District of Columbia and some states and metro areas, the share of sales of distressed properties were actually up in 2017. The share of distressed sales was up by 31% in D.C., for example, and by 23.1% in Baltimore.
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Lakeside Title Company provides title insurance and numerous title-related services in Maryland, Washington, D.C., Northern Virginia, and Southern Pennsylvania. Our processes streamline residential and commercial real estate transactions for lenders, realtors, buyers and sellers. To learn more, give us a call at 410-992-1070. We look forward to the chance to serve you!