Rising profits and uncertainty in real estate
Roseville, CA- According to an article published by the National Association of Realtors, home sellers all across the country received greater profits when thy sold in 2019. The average seller saw a home price gain of $65,500 on a typical sale, which is up from $58,100 the year prior. This is the highest level since 2006.
The article indicated the profit from sales during 2019 represented 34 percent average return on their investment compared to the original purchase price.
Last year, 2019, was a good year for housing as prices set new records and higher profits for sellers and greater challenges for buyers looking for bargains. Looking closer there are signs the market is slowing down. The profits although higher, increased at a slower rate that previous years. It appears low interest rates are providing upward pressure on prices and suggests some uncertainty in the 2020 buying season.
Here in the Sacramento area, we have noticed fewer new listings than we expected to see as we move deeper into 2020.
The NAR article showed that the highest returns are in the western states. The areas with the highest home seller return on investment were:
- San Jose, Calif.: 82.8%
- San Francisco: 72.8%
- Seattle: 65.6%
- Merced, Calif.: 63.2%
- Salem, Ore.: 62.1%
Julie Jalone – Magnum One Realty
If you have any questions about this column or buying a home, please feel free to contact me at MagnumOne Realty office in Roseville (916-899-6571) . You can also reach me by emailing to email@example.com (DRE# 01418097)