Home sellers continue to see higher profits from their homes as a hot housing market rolls on. In the first quarter, sellers generated an average profit of $70,050 on the sale of their home, up 26% compared to a year earlier ($55,750), according to ATTOM Data Solutions’ 2021 U.S. Home Sales Report.
The $70,050 in profit accounts for a 34.2% return on investment compared to the original purchase price, which is also higher than the 30.8% from a year earlier.
“The latest data on home prices and seller profits across the U.S. provide the latest markers of how the U.S. housing market keeps roaring ahead even as major parts of the broader economy try to overcome the impact of the pandemic,” says Todd Teta, chief product officer at ATTOM Data Solutions.
However, Teta notes that the market did take a break from its higher pace of rising home prices in the first quarter of 2021. Home sellers’ average profit in the first quarter of this year, $70,050, is down from $75,750 in the fourth quarter of 2020, which is not an uncommon housing trend during the colder months. Still, “while it’s not unusual for the beginning of the year, it’s definitely something to keep an eye on,” Teta notes. “The next few months will speak huge volumes about whether the market keeps barreling ahead. For now, though, sellers remain in the driver’s seat ringing up great profits.”
The metro with the greatest gain in home seller profits in the first quarter was in San Jose-Sunnyvale-Santa Clara, Calif., which saw an average of $575,000.