We have talked about the topic of equity before; however, it is one of the most important factors in the buying and selling of real estate.
According to Realtor Magazine, in 2020 those who sold their properties averaged $69,000 in equity. Seller profits went up dramatically in 2020.
Single-family home and condo sales represented 34.7% of the return on investment compared to their initial purchase price, which is the highest it has been since 2006.
ATTOM Data Solutions performed this research and according to Todd Teta (Chief Product Officer) “Last year marked a unique year in the history of home prices and profits in the United States,” he added “A once-in-a-century health crisis tore through much of the nation’s economy but seemed to have the opposite effect on the housing market. 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. But they went after a narrowing supply of housing stock, so prices soared and so did seller profits.”
In this research they also found that the western states (including California) saw the highest returns/profits. We told you California is special! The highest profits were seen for those who sold their home in the later part of the 2020.
Are you now wondering if it is too late to sell? No, it is not. 2021 will likely not see the huge price gains that we saw in 2020, however, while the mortgage rates are low, and supply is low (this will change for both over time) you still have a chance to sell your home with big profits. We have mentioned this before but it is worth mentioning again, as prices keep going up affordability drops, so selling will be more difficult with fewer people able to pay the high price tag.
Curious about your particular home/property? Talk to us! Amin Vali Real Estate Investment is geared to help you navigate correctly.