Median home sale prices zoomed to an all-time high last year, helping home sellers net higher profits.
The average home price gain since purchase was $61,000 in 2018, up from $50,000 last year, according to ATTOM Data Solutions’ Year-End 2018 U.S. Home Sales Report. That marks the highest gains for sellers since 2006. In 2018, sellers averaged a 32.6 percent return on investment compared to their original purchase price.
The U.S. median home price in 2018 was $248,000, up 5.5 percent from 2017 to a new record high.
“While 2018 was the most profitable time to sell a home in more than 12 years, those along the coasts, reaped the most gains,” says Todd Teta, chief product officer at ATTOM Data Solutions. “However, those are the same areas where homeowners are staying put longer. The economy is still going strong and home loan rates remain historically low. But there are potential clouds on the horizon. The effects of last year’s tax cuts are wearing off as limits on homeowner tax deductions are in place.”
ATTOM researchers analyzed 217 metro areas with populations greater than 200,000 to find the highest returns on investment. The cities were predominantly located in the west.
The highest average returns on investment for home sellers last year were in San Jose, Calif. (108 percent); San Francisco (78.6 percent); Seattle (70.7 percent); Merced, Calif. (66.4 percent); and Santa Rosa, Calif. (66.1 percent).