The Q1 2017 U.S. Home Sales Report released by ATTOM Data Solutions reveals that the typical U.S. home seller earns 24% return on their investment (about $44,000 per sale), which is the highest profit for home sellers since the middle of 2007.
According to Daren Blomquist, Senior Vice President for ATTOM Data Solutions, many homeowners aren’t ready to sell to home buyers despite the increased ROI, which is causing the market’s ever-worsening inventory problem.
“The first quarter of 2017 was the most profitable time to be a home seller in nearly a decade, and yet homeowners are [staying] in their homes longer before selling,” Blomquist commented. “This counterintuitive combination is in part the result of the low inventory of move-up homes available for current homeowners, while also perpetuating the scarcity of starter homes available for first-time homebuyers.”
Nonetheless, Blomquist reports some promising signs that inventory may be loosening up.
“There are some early signs this inventory logjam may be loosening up in some markets,” Blomquist said, “with the average homeownership tenure down from a year ago in nine of the 66 markets we analyzed, including Memphis, Dallas, Boston, Portland, and Tampa. Sky-high potential price gains may be finally prompting more homeowners to sell.”
The biggest markets for these “stellar” ROIs? Those are along the Pacific coast. According to Q1 data, the top home seller gains occurred in San Jose, California ($365,500 per sale); San Francisco ($276,750); Los Angeles ($187,000); Honolulu ($161,110); and Oxnard-Thousand Oaks-Venture, California ($160,000).
As a percent of the purchase price, the highest gains were in San Jose (71% ROI); San Francisco (65%); Seattle, Washington (56%); Portland, Oregon (52%); and Modesto, California (51%).