The amount of money homeowners profited after selling their homes reached a 12-year high in 2018, according to a new analysis from ATTOM Data Solutions.
According to the 2018 U.S. Home Sales Report, the average home seller realized an average home price gain of $61,000. This is up from $50,000 in 2017, and $39,500 in 2016 when the level reached its peak.
ATTOM Data Solutions Senior Chief Product Officer Todd Teta said while 2018 was the most profitable time to sell a home in more than 12 years, home sellers along the coasts reaped the most gains.
According to ATTOM’s data, The metropolitan areas with the highest average home seller returns were San Jose (108.8%); San Francisco (78.6%); Seattle (70.7%),; Merced, California (66.4%); and Santa Rosa, California (66.1%).
Although Seattle home sellers received high returns, Windermere Real Estate Chief Economist Matthew Gardner said home price growth in Seattle has started to soften, and will likely continue in the coming year.
“Seattle is still benefitting from buyers moving here from more expensive markets, such as California, but the market cannot solely depend on this demographic,” Gardner continued. “My forecast for 2019 is that it will be a year of movement back to balance, which is a very positive thing.”
Notably, the report also indicated that the U.S. median home price reached an all-time high in 2018, increasing 5.5% to $248,000.
According to ATTOM’s data, those with the biggest year-over-year increase in home prices were Mobile, Alabama ( 21%); Flint, Michigan (19%); San Jose (18.9%); Atlantic City, New Jersey (16.4%); and Las Vegas (13.5%).
“The economy is still going strong and home loan rates remain historically low. But there are potential clouds on the horizon,” Teta said. “The effects of last year’s tax cuts are wearing off as limits on homeowner tax deductions are in place and mortgage rates are ticking up ever so slowly, so this could dampen the potential for home price gains in 2019.”
NOTE: ATTOM Data Solutions U.S. Home Sales Report is derived from recorded sales deeds, foreclosure filings and loan data.