According to a recent report released by Attom Data, even though the home price growth is softening in some of the country’s most high-priced markets, it’s still a seller’s market. Homeowners have been experiencing incredible home price gains over the past couple of years. There were returns recorded increasing from $50,027 in 2017 to $58,100 in 2018. In 2019, the average homeowner experienced returns on their home investments of around 34% compared to the properties original price.
“The nation’s housing boom kept roaring along in 2019 as prices hit a new record, returning ever-higher profits to home sellers and posing ever-greater challenges for buyers seeking bargains. In short, it was a great year to be a seller,” said Attom Chief Product Officer Todd Teta in a prepared statement.
Some of the cities that experienced the greatest returns for their second consecutive year are:
- San Francisco, California (72.8 percent)
- Seattle, Washington (65.6 percent)
- Merced, California (63.2 percent)
- Salem, Oregon (62.1 percent)
- San Jose, California (82.8 percent)
Largest Increase In Median Home Price:
However, some of the largest increases in median home price growth happened in secondary markets across the West and Midwest.
- South Bend (18.4 percent)
- Boise City, Idaho (12.6 percent)
- Spokane, Washington (10.9 percent)
- Atlantic City, New Jersey (10.6 percent)
- Salt Lake City, Utah (9.6 percent)
Although there are opportunities for notable returns on investment, homeowners are staying in their homes longer than before. The average tenures have been rising from 8.08 years in Q3 2019 to 8.21 years in Q4 2019 — which is by far the longest average tenure seen since Q1 2000. Homeowners along the East Coast in places like Connecticut have been known to stay in place the longest with tenures as long as 13.49 years. Meanwhile, homeowners in up-and-coming markets across the South and West like Oklahoma are taking advantage of renewed buyer interest with tenures as short as 5 years.