In case you need more evidence of how hot the local housing market has been this year, home seller profits have shot up over the past six months.
Homeowners in the DC area who sold in the third quarter of 2020 saw an average profit of $92,100, according to the latest report from ATTOM Data Solutions. This is a 30% increase in profit year-over-year, the highest quarterly average profit since the first quarter of 2008, and represents a 26% return on investment for sellers.
Home seller profits nationwide averaged $85,000 in the third quarter, reflecting a comparable rate of year-over-year growth (28.8%). Profit margins increased in nine out of 10 metro areas nationwide.
Despite the profits, DC-area homeowners are staying put longer. Homeownership tenure has risen from 1.09 years in the first quarter of 2000 to 8.6 years in the third quarter of 2020. Considering that the average homeownership tenure in the country is 8.13 years (the highest it has been since 2000), it might be past time to retire the DC region’s reputation for transience.
The report uses data from recorded deeds, foreclosure filings, and loans. The DC region is defined based on the Census metropolitan statistical area definition, including areas like Jefferson County, West Virginia, and Frederick, Maryland.