Denverites are getting a better return on investment for their homes than the average American homeowner, according to new survey data from Realtor.com.
Of the 10 most profitable housing markets compiled from the survey data, Denver was sixth with 11 percent ROI. Bridgeport, Conn. had 14 percent ROI, the highest in the study. Denver broker Ryan Penn attributes part of Denver's profitability to its domestic in-migrants, telling The Denver Post, "I’m representing a couple of buyers who are relocating from Los Angeles, and they’re in contract to sign for a $1.3 million home. In California, they would pay three times more for something the same size.”
The analysis found that the median return for homes was 8 percent nationally over the past year. Of the 100 largest metro areas, the annual return was as high as 14 percent and as low as 2 percent. The rates were figured by comparing homes that sold over the past year and comparing that sales price with the previous one, going back as far as 2008. The profit was defined as the difference between the two sales, according to realtor.com.
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