In this hot housing market, home sellers are racking up bigger profits on their homes than they have in a decade. Fast-rising home prices, coupled with homeowners staying put longer than usual are driving the trend.
The average tenure of a homeowner who sold in the second quarter of this year came in at just over eight years, the longest since the year 2000, when ATTOM Data Solutions began tracking the metric. During the last housing boom, in the mid-2000s, the average homeownership tenure was around four years.
Home values recently hit a record high, according to various surveys, and they continue to climb, as demand easily outpaces the supply of homes for sale. Add price gains to increased tenure, and home sellers are now seeing the greatest returns in 10 years. For those who sold in the second quarter of this year, they saw an average profit of $51,000, a 26 percent return.
Regionally, sellers saw the biggest profits in San Jose, California, with 75 percent; San Francisco with 65 percent; Seattle with 63 percent; Modesto, California, with 62 percent; and Denver with 62 percent.
It begs the question, if profits are high and homeowners have been stagnant, why don't more people decide to move?