Home sellers in 2021 may have been a little shocked at the profit they made selling their homes. A report shows that home sellers nationwide realized a profit of $94,092 on a typical sale in 2021, up 71% from two years ago, according to ATTOM Data Solutions, a real estate data firm.
Home seller profits rose in more than 90% of the housing markets tracked based on median purchase and resale prices, marking the highest level since 2008.
The $94,092 profit on a median-priced home sale in 2021 accounted for a 45.3% return on investment compared to the original purchase price, according to ATTOM Data Solutions’ “Year-End 2021 U.S. Home Sales Report.”
Median home prices saw double-digit gains last year as buyers flooded the market. They’ve been driven by historically low interest rates and a desire to change their living circumstances sparked by the coronavirus pandemic.
“What a year 2021 was for home sellers and the housing market all around the U.S.,” says Todd Teta, chief product officer at ATTOM. “Prices went through the roof, kicking profits and profit margins up at a pace not seen for at least a decade. All that happened as the virus pandemic raged on, which actually helped drive the increases instead of stifle them.”
Households that have managed to escape job losses during the pandemic have rushed to the housing market, which has led to a market boom, Teta says. “No doubt, there are warning signs that the surge could slow down this year,” he adds. “But 2021 will go down as one of the greatest years for sellers and one of the toughest for buyers.”
Many western states saw some of the highest returns from typical home sales last year, led by Boise, Idaho (121.8% return on investment); Spokane, Wash. (86.5%); Bremerton, Wash. (82.7%); Prescott, Ariz. (81.2%); and Salem, Ore. (81.2%), according to the report.
Source: ATTOM Data Solutions