Although profit margins have narrowed over the last year, homeowners are still making a bundle on the sale of their homes, particularly in California. Analytics company ATTOM Data Solutions studied the difference between what buyers originally paid for their home and how much they sold it for. The report found that among the top 20 markets nationwide, California had the biggest home seller gains.
San Francisco topped the list with a 74.0 percent return on investment, selling for an average of $385,000 above the original purchase price. This is down from a ROI of 81.6 percent seen last year. San Diego sellers saw a 42 percent return as of April, down from 50 percent during the same month last year.
Homeowners staying in their homes longer is leading to large seller gains. Despite the downturn from last year, current ROIs are still well above levels seen a decade ago.
Today, conforming no-point 30-year fixed mortgage rates are averaging 3.875 percent and 15-year rates are near 3.375 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.