ATTOM’s 2021 year-end report on the housing market found it was far from a typical year. The company noted a number of recent or all-time highs and lows were set, including homeowner tenure, institutional investment, and home sellers’ return on investment (ROI). Homeowners who sold their houses in 2021 realized a median profit of $94,092 according to data released by ATTOM. That was a 45.3 percent gain , up from $64,931 and 33.6 percent in 2020. The profit, based on median purchase and sales prices, was the highest level of profitability since at least 2008 when ATTOM started tracking the data. Profits rose in 90 percent of the 173 metropolitan housing markets with enough data to analyze. Both raw profits and ROI have improved nationwide for 10 straight years , but the 2020 to 2021 gain in ROI – up nearly 12 percentage points – was the largest annual increase since 2013. The increased profitability shouldn’t be a surprise. The national median home price gained 17 percent in 2021 to $301,00, also an annual record. ATTOM said there were a few signs late last year that prices could flatten out in 2022 , including declining affordability, lower investor profits and rising foreclosure activity. Added to those was rising inflation and likely increases in mortgage rates this year. The report adds that the current imbalance in demand and supply suggests that there is room for at least some additional price gains.

Published On: January 31, 2022 / Categories: Mortgage News /