Home Sale ROI at 12-Year High in 2018

Home sellers in 2018 enjoyed an average home price gain since purchase of $61,000—a 32.6 percent return on investment (ROI) compared to the original purchase price, the highest level since 2006, according to new statistics from ATTOM Data Solutions. Last year’s figure was a significant rise from the $50,000 gain in 2017 (a 27 percent return) and the $39,500 gain from 2016 (a 21.9 percent return).

 

Among the nation’s largest metro areas, the highest average home seller ROI levels occurred in San Jose (108.8 percent), San Francisco (78.6 percent), Seattle (70.7 percent), Merced, Calif. (66.4 percent) and Santa Rosa, Calif. (66.1 percent). The U.S. median home price in 2018 was $248,000, up 5.5 percent from 2017 and a new all-time high. Eighty-eight of the nation’s 127 largest metros (69 percent) saw new record peaks for home prices, including Los Angeles, Dallas-Fort Worth, Houston, Atlanta, and Boston.

 

"While 2018 was the most profitable time to sell a home in more than 12 years, those along the coasts, reaped the most gains. However, those are the same areas where homeowners are staying put longer," said Todd Teta, Chief Product Officer at ATTOM Data Solutions. "The economy is still going strong and home loan rates remain historically low. But there are potential clouds on the horizon. 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."

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