How Does Making 71% Profit on the Sale of Your Home Sound?
A new report from ATTOM Data Solutions shows that homeowners across the US are receiving a huge winfall from selling their homes in 2017. The City with the best ROI? It was San Francisco which returned a whopping 71% profit for home sellers, or an average of $356k.
The average profit across the country was an amazing 44%. And just this first quarter, sellers earned $44k more in ROI — the best performance in a very long time. The stats make it hard to argue that real estate investment is how you create wealth today. When you consider how long the housing market has been depressed, it might not be a surprise. But what could surprise you is that this housing market isn’t done yet.
The ATTOM Data Solutions report shows 20 of the top US cities for homeowner profit. It seems 2017 was the year of the seller and hundreds of thousands of people will be selling their house for a fortune and moving on with their lives. But where are they all headed if there are so few homes available? Chances are they will be relocating to southern or tropical destinations or at least to cheaper cities here in the US.
If you’re in the market for selling and looking for a destination, check out International Living — the source for Caribbean, Mexican, and Central American relocation. You’ll be joined by thousands of Toronto and Vancouver home sellers who will be cashing out in 2017.
“The first quarter of 2017 was the most profitable time to be a home seller in nearly a decade, and yet homeowners are continuing to stay put in their homes longer before selling,” said Daren Blomquist, senior vice president with ATTOM Data Solutions.
Homeowners throughout the San Francisco Bay Silicon Valley were the biggest gainers. The phenomenal economy along with a shortage of developable land has created a market where the price could only go up and fast. And the fundamentals of even higher prices are still in play. Housing starts are not expected to ease the issue and there are no homes for sellers to move up to.
That reluctance or inability to sell and move on is one of the key factors in today’s overheated housing markets.
The report showed 13 of the top 20 markets were in California and Colorado. This might reflect trends in wealth and population if not economic growth.
|Top 20 US Cities for Home Sales Profit|
|20||Port St Lucie, FL||$53,000|
|19||Austin Round Rock, TX||$81,795|
|18||San Diego, CA||$144,400|
|17||Riverside San Bernardino||$90,000|
|15||Oxnard Thousand Oaks, CA||$166,000|
|13||Fort Collins, CO||$97,500|
|9||Vallejo Fairfield, CA||$115,000|
|8||Denver Aurora, CO||$110,000|
|6||Stockton Lodi, CA||$101,000|
|4||Portland Vancouver, OR||$110,800|
|2||San Francisco Oakland, CA||$276,750|
|1||San Jose Sunnyvale, CA||$356,000|
How About Best Cities for Rental Income?
There are plenty of cities with potential in rental property investment income. Attom Data reported these US counties:
Counties with the highest annual gross rental yields were Clayton County, Georgia (Atlanta metro area) (23.7 %); Baltimore City, Maryland (23.6%); Macon County metro area (23.5%); Monroe County, Pennsylvania, (20.65); and Saginaw County, Michigan(18.8%).