Number of the Day Shows Home Sale Gains Soared
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That’s how much more people profited in 2020 from selling their homes compared to in 2019, according to a new report from ATTOM Data Solutions.
Sellers realized a profit of $68,843 on a typical sale, up from $53,700 in 2019 and $48,500 in 2018, the Year-End 2020 U.S. Home Sales Report showed. The latest figure is the highest level since at least 2005, when ATTOM first started tracking the data.
The 2020 profit on a median priced single-family home or condo represented a 34.7% return on investment from the original purchase price, up from 29.4% in 2019—the highest average home-seller return on investment since 2006, the report said. Profits soared in tandem with a 12.8% jump in the national median home price in 2020 to a record-high $266,250.
“Demand remained strong as people who could afford the space and relative safety of single-family homes did just that, aided by super-low mortgage rates and a strong stock market,” Todd Teta, chief product officer at ATTOM Data Solutions, said in the report. “But they went after a narrowing supply of housing stock, so prices soared and so did seller profits.”
Freddie Mac released updated mortgage rates Thursday, with 30- and 15-year fixed rates dropping for a second straight week to 2.73% and 2.20%, respectively. And rates look to remain low for the foreseeable future as Federal Reserve Chairman Jerome Powell seems more focused right now on revving up the economy. On Wednesday, the Federal Open Market Committee said it was in no rush to see rates rise and left its benchmark rate near 0%, where it has sat since March 2020 at the height of the global pandemic.