having sufficient historical data. The highest returns on investment were almost exclusively in western states, with concentrations along areas of the west coast. Continuing trends seen in 2016 and 2017, 15 of the top 25 areas reaping the highest
profit margin were in Washington, Oregon, and California, where the majority had a median home sales price in 2018 of at least $350,000. The below chart represents the Top 10 housing markets having the greatest home seller gains in 2018.
GREATEST HOME SELLER PERCENT GAINS IN 2018
108.8% SAN JOSE-SUNNYVALE-SANTA CLARA, CA 78.6% SAN FRANCISCO-OAKLAND-HAYWARD, CA 70.7% SEATTLE-TACOMA-BELLEVUE, WA 66.4% MERCED, CA 66.1% SANTA ROSA, CA 61.3% SALEM, OR 60.4% SANTA CRUZ-WATSONVILLE, CA 58.4% PORTLAND-VANCOUVER-HILLSBORO, OR-WA 57.9% MODESTO, CA 57.6% BOSTON-CAMBRIDGE-NEWTON, MA-NH
DATA IN ACTION
It’s All About the Gains
areas where the 2018 median home sales price was more than $350,000, reaping an average gain of 52.3 percent. Gains were progressively lower in less expensive areas, down to MSAs where the median price last year was less than $150,000. In those areas, profit margins aver- aged only 16.5 percent.
BY ATTOM DATA SOLUTIONS
H ome sellers in the United States made more money on their homes in 2018 than they had in 12 years, reaping a typical profit of 32.6 percent over what they originally paid. This is according to ATTOM Data Solutions year-end U.S. home sales report, which is helping to showcase those markets where the housing market is hot.
The national 32.6 percent sell- er gain equated to a dollar gain of $61,000 in 2018. Nationwide, the in- creases resulted from an overall me- dian sales price of $248,000 that was $61,000, that was more than what the homeowner originally paid for the property. But those gains ranged widely, with sellers in the most ex- pensive areas of the county typically
earning more than three times as large a profit margin as those in the most modest communities. The last time home buyers reaped bigger windfalls on home sales nationwide came during the height of the last real estate boom in 2006, when the typical sale resulted in a 43.3 percent profit. However, home sellers made the most profit in
MARKETS THAT ARE HOT Among the 217 metropolitan statistical areas with a population greater than 200,000 as well as
24 think realty housing news report
may 2019 25
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