The typical Columbus homeowner who sold their home last year received $85,000 more than they paid, according to a new study from real estate service Attom Data Solutions.
That’s $15,000 more than the previous year, and the highest margin since Irvine, Calif.-based Attom began tracking that figure in 2008.
Attom found that a typical Columbus-area homeowner sold their home for $245,000, having paid $160,000 six to seven years earlier, for a 53% gain.
Nationally, home sellers in 2021 made an average profit of $94,092 on their homes, up 45% from a year earlier, according to Attom, which strictly takes into account the price of purchase and sale in its calculation, not improvements or other costs.
“What a year 2021 has been for home sellers and the housing market in the United States,” said Todd Teta, chief product officer at Attom, in a press release. “Prices have exploded, driving up profits and profit margins at a pace not seen in at least a decade.”
Margins rise in Ohio as home prices rise amid COVID-19
Home prices in Columbus and elsewhere have risen sharply during the pandemic as buyers seek more space and take advantage of low interest rates.
Columbus-area profit margins were leading, but margins were up across Ohio. In Akron, the typical home sold for $52,000 over the purchase price; in Guangzhou, $48,225; in Cincinnati, $66,524; in Cleveland, $35,100; in Dayton, $59,895; in Toledo, $35,000; and in Youngstown, $38,600.
Western cities saw the best return on investment, led by Boise, Idaho, where the typical homeowner sold their home for $430,438 last year after buying it for $236,397, a gain of 122%.
In dollar terms, California homeowners made the biggest gains, led by sellers in San Jose, who sold their homes for an average of $575,000 more than they paid, followed by San Francisco, where the sellers recovered $462,000 over the purchase price.
All of this good news for sellers means bad news for buyers, a momentum that should continue this year, although price increases should moderate some of it.
“Without a doubt, there are early signs that the push could slow down this year,” Teta said. “But 2021 will go down as one of the best years for sellers and one of the toughest for buyers.”
Buyers may find the situation particularly difficult in Columbus, which is expected to be one of the five hottest real estate markets in the country in 2022.