Seller Profits Soar in 2020
Home sellers nationwide realized a home-price gain of $68,843 on the typical sale in 2020 which represented a 34.7% return on investment compared to the original purchase price (ATTOM)
- 2019: Had gains of $53,700 on a typical sale which was a 29.4% ROI
- 2018: Had gains of $48,500 on a typical sale which was a 27.2% ROI
NEW RECORD: The U.S. median home price increased 12.8% in 2020, hitting an all-time annual high of $266,250. This outpaces both 2019 and 2018 which saw appreciation of 4.4% and 4.8%, respectively.
Since 2012, the national median home price has risen 72.3%
HOMEOWNER TENURE: In Q4 the average seller had been in their home 8.33 years. This was the longest average home seller tenure since at least the first quarter of 2000.
CASH IS NOT KING: All-cash purchases accounted for 23.5% of single-family home and condo sales in 2020, the lowest level since 2007
ANALYSIS: Todd Teta, chief product officer at ATTOM Data Solutions, said in a statement, “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.