Anyone who sold their home last year may have been shocked at the huge profit they made. The average gain made by home sellers in 2021 was $94,092, according to new analysis from ATTOM Data Solutions. This is an increase of 45% over last year and 71% over two years ago.
Profits for home sellers jumped in more than 90% of the housing markets tracked by ATTOM, based on median purchase and resale prices. These are the highest gains since 2008.
The $94,092 profit on a median-priced home transaction in 2021 meant a 45.3% return on investment over the price people originally paid for their homes, the year-end report says. by ATTOM 2021 U.S. Home Sales Report found.
Home sales prices have risen by double digits over the past 12 months as properties for sale become scarce as buyers flood the market. Shopping activity has increased due to low interest rates and many people’s desire to change their living arrangements, which is a direct result of the COVID-19 pandemic.
“What a year 2021 has been for home sellers and the housing market across the United States,” said Todd Teta, chief product officer at ATTOM. “Prices have exploded, driving up profits and profit margins at a rate not seen in at least a decade. This all happened as the virus pandemic raged on, which actually helped spur the increases rather than stifle them.
Households that managed to escape job losses during the pandemic rushed into the housing market, leading to a market boom, Teta said.
“Undoubtedly, there are early signs that the outbreak may slow this year,” he continued. “But 2021 will go down as one of the best years for sellers and one of the toughest for buyers.”
Many western states saw some of the strongest returns from typical home sales last year, led by Boise, Idaho (121.8% return on investment); Spokane, Wash. (86.5%); Bremerton, Wash. (82.7%); Prescott, Arizona (81.2%); and Salem, Oregon (81.2%), according to the report.