According to a recent report by ATTOM Data Solutions, profits from home sales hit record highs in 2019, reaching an average home price gain of $65,500 from a typical sale, which is up from last year's average of $58,100.
This new record put home seller profits at a 13-year high -- the highest amount since 2006 -- and represents a typical 34% return on investment compared to the original purchase price. The markets with the highest return on investment for home sale profits are in Western states with a large concentration in metro markets along the West Coast.
Home price appreciation is also on the rise, with the U.S. median home price increasing 6.2% to an all-time high of $258,000. Boise, Idaho, one of Millionacres' hottest rental markets, made the top of the list for the largest year-over-year increases in median home prices alongside:
- South Bend, Indiana.
- Spokane, Washington.
- Atlantic City, New Jersey.
- Salt Lake City, Utah.
Home tenure, or the period of time home sellers own their home, also saw a slight uptick since 2018 to an average 8.21 years, which is the longest period of home tenure since the first quarter of 2000.
Not every market is benefiting from longer home tenure, however -- 45 of the 108 metro areas, around 42%, posted a year-over-year decrease in home tenure. This includes:
- Colorado Springs, Colorado.
- Modesto, California.
- Visalia, California.
- Oklahoma City, Oklahoma.
- Olympia, Washington.
While 2019 was a great year to be a home seller, the market is showing signs of slowing. Profits increased at the slowest pace since 2011 while median home price appreciation lagged behind the 7.1% increase that took place from 2016 to 2017, prompting uncertainty for home sellers and the housing market in 2020.
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