Average home sale nets $54,000 profit

February 13, 2018 2:01 pm

The average home sale in the United States at the end of 2017 generated $54,000 profit – a decade high.

The equity profit on the average home sale in Quarter 4, 2017, was up from $53,732 three months earlier. It was also up from $47,133 in Quarter 4, 2016, according to data from ATTOM Data Solutions.

The average 29.7% return on investment compared to the original purchase price in Q4 2017, was up from 28.8% in the previous quarter. In addition, it was up 26.8% from a year earlier.

Most profitable time to sell a home in 10 years

Daren Blomquist, senior vice president at ATTOM Data Solutions, says, “It’s the most profitable time to sell a home in more than 10 years yet homeowners are staying put longer than we’ve ever seen.”

The U.S. median home price in 2017 was $235,000, up 8.3% from 2016 to a new all-time high.

Homeowners who sold in the fourth quarter of 2017 owned their homes for 8.18 years on average. This is the longest time since data began to be collected in 2000. This was up from 8.12 years in the previous quarter and 7.78 years a year earlier.

Nationwide all-cash purchases accounted for 29% of single-family home and condo sales in 2017, up 0.3% year-on-year – the first rise in five years – and well above the pre-recession average of 20.3% from 2000-2007.

Institutional investors nationwide accounted for 2.6% of all single-family home and condo sales in 2017, down from 3% in 2016.

Nationwide buyers using Federal Housing Administration (FHA) loans accounted for 13.6% of all single-family home and condo purchases in 2017, down from 15.4% in 2016 to the lowest level since 2014, but still well above the 7% average between 2000 and 2007.

Source: https://www.attomdata.com/news/home-prices-and-sales/2017-home-sales-report/