According to an analysis recently released by Zillow, the average homeowner pocketed $38,856, or a 20.8 percent return, when selling, having had their home for 8.4 years.
I find it funny that in my community that is only 4.5 years old many residents are looking for more than that only having owned their homes for two to three years. People here that are having to sell due to job relo or other reasons are selling for roughly what they paid for their homes two years earlier. Very few see a gain of a few thousand dollars.
“In a housing market that’s been plagued by low inventory and increasing demand, homeowners in the nation’s hottest markets have been able to cash in when they sell their homes,” says Aaron Terrazas, senior economist at Zillow. “A home is typically the biggest investment someone makes, and it’s paid off for longtime owners in many markets across the country. Today’s typical seller bought in 2010, just before the national housing market bottomed out in 2012. Of course, these sellers typically are buyers, as well, but the profits from the sale of their former home give them an advantage over first-time buyers who may be coming in with smaller down payments.”
The earnings jump in pricey San Jose, where the average homeowner gains a 53.8 percent return, or $296,000, having had the home for 8.9 years. Homeowners are also profiting richly in San Francisco, with a 45.5 percent return, or $222,000, over 8.5 years, and in Los Angeles, with a 33.1 percent return, or $137,000, over 9.1 years.
In 20 of the largest markets: