Americans who sold their homes in 2018 made an average profit of $61,000, or 32.6 percent, according to ATTOM Data Solutions' latest findings, the highest returns since 2006.
The median profit in 2017 was $50,000, translating to a 22 percent annual increase. Home sellers on the West Coast made even more: San Jose, Calif. homeowners reaped a 108.8 percent average profit, in San Francisco average profit was 78.6 percent, Seattle had 70.7 percent, Merced, Calif. had 66.4 percent, and Santa Rosa, Calif. sellers saw 66.1 percent average profit, Realtor.com reports.
Prices rose so high in some of these metropolitan areas (which include cities and the surrounding suburbs), they're now seeing a wave of price reductions as sellers are forced to lower their expectations. That's one of the strong indicators that the good times are likely to slow down this year, along with the rest of the real estate market.
"There are potential clouds on the horizon," Todd Teta, ATTOM's chief product officer, said in a statement. "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.”
Advertisement
Related Stories
Sales
Sales and Texting? Know the Rules
Texting your sales prospects en masse can be an efficient way to get your message through if you follow these best practices
Affordability
Will NAR's Landmark Commissions Settlement Lower Housing Costs?
The $418 million deal changes long-standing rules—written and unwritten—that consumers claim inflated sales commissions for home sellers, including new-home builders
Market Data + Trends
January's Mortgage Rate Dip Prompts Some Thawing of the Housing Market
A drop in mortgage rates from recent peaks nudged more homebuyers and sellers into the market, signaling the start of greater supply and demand
