In the last quarter of 2017, home sellers took in an average 29.7 percent profit on their home sales, or $54,000 more than what they originally paid. Attom Data Solutions' report says this is the most sellers have gained since Q3 2007.
Attom senior vice president Daren Blomquist says that low supply, high demand, and speedy home price appreciation are major driving factors. He added, "This housing boom started on the coasts, but is spreading to the middle of the country." Realtor.com points out that one downside for sellers is that there are less homes available on the market to trade up, and as a result, more homeowners are staying in their homes longer, "Those who sold their properties in the last quarter of the year had owned them for about 8.18 years."
In a sign of a stronger economy, more buyers are also opting to pay all cash for their residential real estate. These sales made up 29 percent of single-family home and condo sales in 2017. Meanwhile, distressed sales fell to a 10-year low, to make up only about 14 percent of all single-family home and condo sales. "There's fewer people going into foreclosure because if someone does get into trouble or lose their job, they have equity in their home that can provide a cushion," Blomquist says.
