A new report shows how profitable it can be to be a homeowner in the DC area.
Owners in the region who sold a home in 2019 saw an average profit of $69,500, according to ATTOM Data Solutions’ 2019 US Home Sales Report. This represents a steady increase in average profits since 2015, when the average was $38,000; the average profit was just shy of $60,000 in 2018.
Seller profits nationwide averaged $65,500, an increase from $58,100 in 2018 and the highest profit since 2006. Meanwhile, cash purchases represented 25 percent of home sales in 2019, the lowest level since 2007, but still higher than the 17 percent observed in DC proper.
Unsurprisingly, the DC area was one of 105 out of 134 metro areas where home prices peaked in 2019, with a metrowide median of $395,000. Another interesting data point was that Maryland was among a handful of states where distressed sales (eg. foreclosures, short sales, etc.) were the most prevalent type of home sale in 2019, accounting for 18.1% of transactions.
One thing that remains consistent with home sales profits is how long people are staying in their home. Homeownership tenure has steadily increased in the DC area over the last twenty years, going from 1.09 years in the first quarter of 2000 to 8.2 years in the last quarter of 2019. This puts homeownership tenure in the DC area on par with the nationwide average of 8.21 years.
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.