ATTOM Data Solutions recently released its Year-End 2020 U.S. Home Sales Report, which found that 2020 experienced a home-price gain of $68,843 on a typical sale, up from $53,700 in 2019 and $48,500 two years ago.
According to the report, the $68,843 profit on median priced single-family homes and condos translates to a 34.7 percent ROI compared to the original purchase price—up from 29.4 percent last year and 27.2 percent in 2018, and the highest average home-seller ROI since 2006.
Regionally, the West saw the highest returns on investments. The top 10 metro areas with the highest ROIs were San Jose, Calif., (87.3 percent); Seattle, Wash., (72.1 percent); Salem, Ore., (69.9 percent); Spokane, Wash., (69.2 percent); and San Francisco, Calif., (68.2 percent).
“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.”
Source: ATTOM Data Solutions