Statistics provided by Attom Data show that home sellers earned close to $54,000 in profit in 2017. The numbers are at their highest level in 10 years, including an average investment return of 30 percent. There is a shortage of available homes for sale and prices continue to rise, which is great news for home sellers and terrible news for homebuyers.
So, why are many Americans hesitant to sell their homes and capitalize on rising home prices? Some analysts believe that many homeowners are unwilling to sell because they will have trouble finding a new home to buy. The hesitation stems from not wanting to get trapped in a rental situation. Essentially, homeowners do not want to get priced out of the market as home values continue to appreciate.
The housing markets in Seattle, San Francisco and the cities surrounding areas are booming. Home sellers are making a killing as prices continue to accelerate, but many of those sellers are finding it difficult to find a new home without using all the profit from their original home sales.
In today’s housing market, many homeowners are choosing to stay in their homes for much longer than in the past decade. With a lack of new home construction and rising demand, many homeowners now prefer to avoid the hassle of a bidding war and just stay in their homes until the market stabilizes.