I came across this report and wanted to share it with you! It shows that even while there was a pandemic, in 2020 seller’s profits and ROI increase for home sales. This information is from ATTOM Data Solutions.
–Home sellers pocketed a $68,843 profit on the typical home sale, the most since 2005.
–The return on investment (ROI) was 34.7% in 2020 and that is the highest since 2006.
–Home seller profits went up in more than 90% of the markets evaluated.
–-Both profits and ROI have now grown nationwide nine years in a row. This is the highest annual increase since 2017.
The combination of rising profits and record prices came during a year when the national housing market fended off damage that afflicted wide swaths of the US economy after the Coronavirus pandemic of 2020 began spreading across the country in February. A housing market boom that began in 2012 continued into its ninth year despite high unemployment levels not seen since the Great Depression.
Taken from the chief product officer of ATTOM Data Solutions, I think this quote sums it up quite nicely:
“Last year marked a unique year in the history of home prices and profits in the United States. A once-in-a-century health crisis tore through much of the nation’s economy but seemed to have the opposite effect on the housing market,” said Todd Teta, chief product officer at ATTOM Data Solutions. “Demand remained strong as people who could afford the space and relative safety of single-family homes did just that, aided by super-low mortgage rates and a strong stock market. But they went after a narrowing supply of housing stock, so prices soared and so did seller profits. While it’s unclear how long that will last, in the annals of history, there will be few years recorded as better for sellers and more challenging for buyers.”
Amazingly, seller’s profits and ROI increase in home sales in 2020! I look forward to seeing what happens in 2021!
Beth Brake REALTOR®
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