At the end of 2017, home sellers' return on investment was at a 10-year high of almost 30 percent, according to Attom Data Solutions. Yet, homeowners are staying in their homes twice as long as they were 10 years ago.
"It is a bit of a chicken and egg situation," said Daren Blomquist, senior vice president of communications at Attom. He explained to CNN that because fewer homeowners are moving, there is less demand for new homes to be built. Additionally, the new homes that are being built are not keeping pace with current demand, as only roughly one million new homes are on the market, less than the average rate of 1.5 million.
"It is fun and exciting to see a huge appreciation in your home," said Allie Howard, a Redfin real estate agent in Seattle. "But what scares [sellers] is not wanting to be stuck in a rental scenario when homes continue to appreciate and they get concerned they will be priced out." West Coast home sellers have seen the largest gains, with those in San Jose, California, experiencing a 91 percent return on investment at the end of 2017.
