Do you believe that home-sellers made about a 45 percent return on investment when they sold in 2021? Attom, the real estate data company, reported that, “The $94,092 profit on the median-priced home sale in 2021 represented a 45.3 percent return on investment compared to the original purchase price, up from 33.6 percent last year and from 30.6 percent in 2019.”*


With entry level homes in many cities in Southern California being listed way over half a million dollars, it is no surprise that home owners are reaping the benefits of the high prices when they go to sell. 


Attom continued that, “Home prices in 2021 reached new peaks since the Great Recession in 168 of the 173 metros analyzed (98 percent), including New York, NY; Los Angeles, CA; Chicago, IL; Dallas, TX, and Houston, TX.”*

 

Home Seller Tenure Decreases

Another interesting fact is that people who sold in the last quarter of 2021 had on average owned their home for about 6 years which was down from a couple years ago. The opportunity to sell and make that profit induced homeowners to sell and that home-seller tenure “represented the shortest average home-seller tenure since the first quarter of 2012.”*


If you bought two years ago or twenty years ago, then you have most likely built up equity in your home. Equity is the difference between a home’s value and what a homeowner owes on the home. Investopedia defines it as: “Home equity is the value of a homeowner’s interest in their home”. If prices go up and homeowners are not taking out loans against their home but are paying off their mortgage, then their home equity will increase. 

 

Weighing Options Before Selling

If you are considering selling but weighing your options — remodeling, downsizing, upsizing, moving out-of-state — then you are invited to talk to us. Call our office at 626-609-2130 and ask us as many questions as you like. We are in business to help you. 


Remodeling is a good option if you have the funds and absolutely love the location of your home. If you aren’t crazy about your location or you have a home that requires substantial structural changes, then moving might make more sense. 


Almost $100,000 is what a lot of home sellers made when they sold last year. Have you heard any crazy stories about selling that you want to share? 



Sources: 

https://www.attomdata.com/news/market-trends/home-sales-prices/attom-year-end-2021-u-s-home-sales-report/

This content is not the product of the National Association of REALTORS®, and may not reflect NAR's viewpoint or position on these topics and NAR does not verify the accuracy of the content.