Average $61,000 profit from home sales

February 11, 2019 12:18 pm

Sellers across the United States gained an average $61,000 profit from home sales – a 12-year high.

Cape Coral-Fort Myers featured among the highest proportion of all-cash sales at 45.4%.

That is according to the latest figures from ATTOM Data Solutions in its 2018 US Home Sales Report.

The gain – the highest since 2006 – is up $11,000 from 2017 and $21,500 from 2015.

Average $61,000 profit from home sales is 32% ROI

The 2018 profit is an average 32.6% return on investment (ROI) . In 2017 the ROI was 27% and in 2016 it was 21.9%.

Todd Teta, Chief Product Officer at ATTOM Data Solutions, says, “While 2018 was the most profitable time to sell a home in more than 12 years, those along the coasts, reaped the most gains. 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 and mortgage rates are ticking up ever so slowly, so this could dampen the potential for home price gains in 2019.”

The U.S. median home price in 2018 was $248,000, up 5.5% from 2017 to a new all-time high. Annual home price appreciation in 2018 slowed slightly compared to the 7.1% in 2017.

More  than two-thirds of metros reached new record home price peaks

More than two-thirds – 88 of the 127 metros (69%) – reached new record home price peaks in 2018.

Homeowners who sold in the fourth quarter of 2018 had owned their homes an average of 8.3 years, up from 8.13 years in the previous quarter and up from 7.95 years in Quarter 4, 2017 to the longest average home seller tenure as far back as data is available, Quarter 1, 2000.

Nationwide all-cash purchases accounted for 27.8% of single-family home and condo sales in 2018, unchanged from 2017 but down from its peak in 2011 at 38.4%. Even so, this is still well above the pre-recession average of 18.7% from 2000-2007.

Distressed home sales — including bank-owned (REO) sales, third-party foreclosure auction sales, and short sales — accounted for 12.4% of all U.S. single family home and condo sales in 2018, down from 14% in 2017 and down from a peak of 38.6% in 2011.

Institutional investors nationwide accounted for 2.7% of all single-family home and condo sales in 2018, down from 3% in 2017.

Nationwide buyers using Federal Housing Administration (FHA) loans accounted for 10.6% of all single-family home and condo purchases in 2018, down from 13.6% in 2017 to the lowest level since 2007.

Source: https://www.attomdata.com/news/most-recent/year-end-2018-u-s-home-sales-report/