Connect with us

Real Estate

West Coast Home Sellers Cashing In the Most on Record Home Values

Oakland sellers averaged $235,000 in profit on the sale of their home last year, 78 percent more than what they initially paid

– Home sellers in the West Coast’s hottest cities saw the greatest return on their investment when they sold in 2016, especially in Oakland, Calif. and Portland, Ore.

– In Oakland, the typical seller in 2016 sold their home for an average of $590,000 after living in it for just over seven years, which is 78 percent more than what they initially paid.

– Nationally, home sellers in 2016 sold for 24 percent more than what they initially paid, after living it for about 7 ½ years. That’s about a $40,000 gain.

Holding onto your home for a long period of time over the last decade meant a serious return on investment, especially in some of the nation’s hottest housing markets. According to a new Zillow® analysisiOakland, Calif. and Portland, Ore. top the list of cities where home sellers saw the greatest return.

Advertisement

In Oakland, the typical seller in 2016 sold their home for an average of $590,000 after living in it for just over seven years, which is 78 percent more than what they initially paid. In Portland, the typical 2016 seller sold for about $145,000 more than what they paid nine years earlier, a 65 percent gain.

Nationally, it’s financially advantageous to buy a home rather than rent if you plan on living in it for at least two years and one month, but staying much longer than that has really paid off. U.S. homeowners who lived in their home for about 7 ½ years gained almost $40,000 on the sale of their home — 24 percent more than what they initially paid.

The housing market recovery has sent home values roaring higher in the past several years, especially in West Coast cities that are attracting people with well-paying jobs. Despite the opportunity to cash in on record-high home values, some homeowners choose not to sell because they don’t want to become buyers in a competitive market.

Low inventory and strong demand are driving up home values in these popular markets, making it difficult for aspiring buyers to find a home, but providing a good opportunity for homeowners looking to sell.

Top 10 Cities Where Home Sellers Cashed Out on Record Home Values

Rank

Advertisement

City

Median Years
Owned

Dollar Gain on
Saleii

Annual Dollar
Gain on Sale

Percent Gain
on Sale

1

Advertisement

Oakland, Calif.

7 years 3 months

$                 235,000

$                33,913

78.0%

2

Advertisement

Portland, Ore.

9 years 1 month

$                 145,026

$                16,714

64.7%

3

Advertisement

San Jose, Calif.

9 years 8 months

$                 271,150

$                30,562

56.5%

4

Advertisement

Denver

7 years 7 months

$                 119,500

$                18,162

56.0%

5

Advertisement

Los Angeles

9 years 8 months

$                 200,000

$                23,200

53.7%

6

Advertisement

Sacramento, Calif.

6 years 11 months

$                   82,500

$                12,000

53.6%

7

Advertisement

Seattle

9 years 2 months

$                 185,000

$                20,840

53.1%

8

Advertisement

Philadelphia

7 years 11 months

$                   40,225

$                  4,194

51.7%

9

Advertisement

New Orleans

8 years 7 months

$                   81,000

$                10,475

51.5%

10

Advertisement

Boston

7 years 10 months

$                 182,500

$                25,036

49.6%

“The housing market can change a lot in 10 years, and you see that reflected in this top 10 list,” said Zillow Chief Economist Dr. Svenja Gudell. “Buying a home is one of the biggest financial decisions people will make in their lifetime, and it really paid off for sellers in these cities. Every city on this list has been growing extremely fast over the past decade, with the majority passing peak home value hit during the housing bubble. It’s extremely difficult to time the market, but if you’re a longtime homeowner in one of these cities, you could potentially see a great return on your investment.”

Advertisement

Among Zillow’s top 10 list, three cities have home values growing in the double-digits. In Seattle, home values rose 15.5 percent year-over year, the fastest growing among the list, followed by Boston and Sacramento, Calif.

City

Median Years
Owned

Dollar Gain
on Sale

Annual Dollar
Gain on Sale

Percent Gain
on Sale

Advertisement

Zillow Home Value
Indexiii (ZHVI)

ZHVI YoY
Change

United States

7 years 5 months

$39,900

$5,404

Advertisement

24.1%

$200,700

6.8%

Los Angeles, CA

9 years 8 months

$200,000

Advertisement

$23,200

53.7%

$632,000

7.6%

Philadelphia, PA

7 years 11 months

Advertisement

$40,225

$4,194

51.7%

$138,900

7.6%

Phoenix, AZ

Advertisement

6 years 6 months

$58,000

$8,916

34.5%

$215,800

9.5%

Advertisement

Las Vegas, NV

5 years 8 months

$39,666

$6,500

27.2%

$220,900

Advertisement

10.1%

San Diego, CA

8 years 11 months

$125,000

$16,444

33.3%

Advertisement

$583,300

8.4%

San Jose, CA

9 years 8 months

$271,150

$30,562

Advertisement

56.5%

$892,400

7.3%

Jacksonville, FL

5 years 9 months

$22,800

Advertisement

$3,850

22.4%

$153,600

10.8%

Fort Worth, TX

6 years 11 months

Advertisement

$40,500

$6,000

20.3%

n/a

n/a

Columbus, OH

Advertisement

7 years 9 months

$19,000

$2,323

16.3%

$129,900

8.7%

Advertisement

Memphis, TN

6 years 5 months

$6,800

$936

8.5%

$81,900

Advertisement

7.6%

Charlotte, NC

8 years 2 months

$30,500

$3,947

18.9%

Advertisement

$187,100

9.0%

Boston, MA

7 years 10 months

$182,500

$25,036

Advertisement

49.6%

$560,300

11.0%

Seattle, WA

9 years 2 months

$185,000

Advertisement

$20,840

53.1%

$690,300

15.5%

Baltimore, MD

3 years 5 months

Advertisement

$5,000

$938

5.4%

$122,800

3.7%

Denver, CO

Advertisement

7 years 7 months

$119,500

$18,162

56.0%

$385,600

9.0%

Advertisement

Nashville, TN

8 years

$61,450

$8,648

40.4%

$233,000

Advertisement

13.7%

Milwaukee, WI

8 years 1 month

$14,000

$1,270

15.0%

Advertisement

$108,200

9.1%

Tucson, AZ

7 years 7 months

$29,500

$3,100

Advertisement

23.1%

$165,600

8.2%

Portland, OR

9 years 1 month

$145,026

Advertisement

$16,714

64.7%

$416,700

5.0%

Omaha, NE

8 years 1 month

Advertisement

$21,000

$2,751

14.4%

$155,900

9.0%

Fresno, CA

Advertisement

7 years 3 months

$48,000

$6,156

42.4%

$215,900

9.9%

Advertisement

Sacramento, CA

6 years 11 months

$82,500

$12,000

53.6%

$305,200

Advertisement

10.9%

Mesa, AZ

7 years 6 months

$49,000

$5,808

33.8%

Advertisement

$224,800

7.0%

Long Beach, CA

10 years 1 month

$137,500

$16,452

Advertisement

43.7%

$557,400

6.8%

Virginia Beach, VA

8 years 8 months

$40,000

Advertisement

$4,822

20.4%

$260,200

3.8%

Colorado Springs, CO

8 years 5 months

Advertisement

$38,150

$5,201

29.0%

$254,600

9.4%

Atlanta, GA

Advertisement

7 years 1 month

$46,000

$8,372

26.9%

$212,200

9.5%

Advertisement

Miami, FL

5 years 8 months

$70,000

$13,832

37.4%

$300,800

Advertisement

1.5%

Oakland, CA

7 years 3 months

$235,000

$33,913

78.0%

Advertisement

$687,600

9.2%

Honolulu, HI

8 years 9 months

$115,000

$15,146

Advertisement

31.3%

$673,700

4.8%

Minneapolis, MN

7 years 2 months

$51,100

Advertisement

$7,058

28.9%

$238,300

8.2%

New Orleans, LA

8 years 7 months

Advertisement

$81,000

$10,475

51.5%

$168,200

-1.9%

Arlington, TX

Advertisement

8 years 5 months

$43,426

$5,031

32.8%

$180,900

7.8%

Advertisement

Zillow

Zillow is the leading real estate and rental marketplace dedicated to empowering consumers with data, inspiration and knowledge around the place they call home, and connecting them with the best local professionals who can help. In addition, Zillow operates an industry-leading economics and analytics bureau led by Zillow’s Chief Economist Dr. Svenja Gudell. Dr. Gudell and her team of economists and data analysts produce extensive housing data and research covering more than 450 markets at Zillow Real Estate Research. Zillow also sponsors the quarterly Zillow Home Price Expectations Survey, which asks more than 100 leading economists, real estate experts and investment and market strategists to predict the path of the Zillow Home Value Index over the next five years. Launched in 2006, Zillow is owned and operated by Zillow Group, Inc. (NASDAQ:Z and ZG), and headquartered in Seattle.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *


Global Brands Magazine is a leading brands magazine providing opinions and news related to various brands across the world. The company is head quartered in the United Kingdom. A fully autonomous branding magazine, Global Brands Magazine represents an astute source of information from across industries. The magazine provides the reader with up- to date news, reviews, opinions and polls on leading brands across the globe.


Copyright - Global Brands Publications Limited © 2020. Global Brands Publications is not responsible for the content of external sites.

Translate »