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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.

Sep 6, 2017

SEATTLE, Sept. 6, 2017 /PRNewswire/ -- 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® analysisi, Oakland, Calif. and Portland, Ore. top the list of cities where home sellers saw the greatest return.

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

City

Median Years
Owned

Dollar Gain on
Saleii

Annual Dollar
Gain on Sale

Percent Gain
on Sale

1

Oakland, Calif.

7 years 3 months

$                 235,000

$                33,913

78.0%

2

Portland, Ore.

9 years 1 month

$                 145,026

$                16,714

64.7%

3

San Jose, Calif.

9 years 8 months

$                 271,150

$                30,562

56.5%

4

Denver

7 years 7 months

$                 119,500

$                18,162

56.0%

5

Los Angeles

9 years 8 months

$                 200,000

$                23,200

53.7%

6

Sacramento, Calif.

6 years 11 months

$                   82,500

$                12,000

53.6%

7

Seattle

9 years 2 months

$                 185,000

$                20,840

53.1%

8

Philadelphia

7 years 11 months

$                   40,225

$                  4,194

51.7%

9

New Orleans

8 years 7 months

$                   81,000

$                10,475

51.5%

10

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."

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

Zillow Home Value
Indexiii (ZHVI)

ZHVI YoY
Change

United States

7 years 5 months

$39,900

$5,404

24.1%

$200,700

6.8%

Los Angeles, CA

9 years 8 months

$200,000

$23,200

53.7%

$632,000

7.6%

Philadelphia, PA

7 years 11 months

$40,225

$4,194

51.7%

$138,900

7.6%

Phoenix, AZ

6 years 6 months

$58,000

$8,916

34.5%

$215,800

9.5%

Las Vegas, NV

5 years 8 months

$39,666

$6,500

27.2%

$220,900

10.1%

San Diego, CA

8 years 11 months

$125,000

$16,444

33.3%

$583,300

8.4%

San Jose, CA

9 years 8 months

$271,150

$30,562

56.5%

$892,400

7.3%

Jacksonville, FL

5 years 9 months

$22,800

$3,850

22.4%

$153,600

10.8%

Fort Worth, TX

6 years 11 months

$40,500

$6,000

20.3%

n/a

n/a

Columbus, OH

7 years 9 months

$19,000

$2,323

16.3%

$129,900

8.7%

Memphis, TN

6 years 5 months

$6,800

$936

8.5%

$81,900

7.6%

Charlotte, NC

8 years 2 months

$30,500

$3,947

18.9%

$187,100

9.0%

Boston, MA

7 years 10 months

$182,500

$25,036

49.6%

$560,300

11.0%

Seattle, WA

9 years 2 months

$185,000

$20,840

53.1%

$690,300

15.5%

Baltimore, MD

3 years 5 months

$5,000

$938

5.4%

$122,800

3.7%

Denver, CO

7 years 7 months

$119,500

$18,162

56.0%

$385,600

9.0%

Nashville, TN

8 years

$61,450

$8,648

40.4%

$233,000

13.7%

Milwaukee, WI

8 years 1 month

$14,000

$1,270

15.0%

$108,200

9.1%

Tucson, AZ

7 years 7 months

$29,500

$3,100

23.1%

$165,600

8.2%

Portland, OR

9 years 1 month

$145,026

$16,714

64.7%

$416,700

5.0%

Omaha, NE

8 years 1 month

$21,000

$2,751

14.4%

$155,900

9.0%

Fresno, CA

7 years 3 months

$48,000

$6,156

42.4%

$215,900

9.9%

Sacramento, CA

6 years 11 months

$82,500

$12,000

53.6%

$305,200

10.9%

Mesa, AZ

7 years 6 months

$49,000

$5,808

33.8%

$224,800

7.0%

Long Beach, CA

10 years 1 month

$137,500

$16,452

43.7%

$557,400

6.8%

Virginia Beach, VA

8 years 8 months

$40,000

$4,822

20.4%

$260,200

3.8%

Colorado Springs, CO

8 years 5 months

$38,150

$5,201

29.0%

$254,600

9.4%

Atlanta, GA

7 years 1 month

$46,000

$8,372

26.9%

$212,200

9.5%

Miami, FL

5 years 8 months

$70,000

$13,832

37.4%

$300,800

1.5%

Oakland, CA

7 years 3 months

$235,000

$33,913

78.0%

$687,600

9.2%

Honolulu, HI

8 years 9 months

$115,000

$15,146

31.3%

$673,700

4.8%

Minneapolis, MN

7 years 2 months

$51,100

$7,058

28.9%

$238,300

8.2%

New Orleans, LA

8 years 7 months

$81,000

$10,475

51.5%

$168,200

-1.9%

Arlington, TX

8 years 5 months

$43,426

$5,031

32.8%

$180,900

7.8%

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.

Zillow is a registered trademark of Zillow, Inc.

i Zillow analyzed the 50 largest U.S. cities looking for places where home sellers saw the greatest return on their investment. In order to be included in Zillow's analysis, data needs to be available on at least 60 percent of home sale transactions. If 40 percent of transaction data is missing, the city was not included in the analysis. Among the 50 largest U.S. cities, 17 cities did not meet this threshold and were not included. As a result, 33 of the largest 50 U.S. cities were ranked.
ii The difference between purchase price and sale price without adjusting for carrying costs and transaction costs.
iii The Zillow Home Value Index (ZHVI) is the median estimated home value for a given geographic area on a given day and includes the value of all single-family residences, condominiums and cooperatives, regardless of whether they sold within a given period. It is expressed in dollars, and seasonally adjusted.

 

SOURCE Zillow

For further information: Jordyn Lee, Zillow, press@zillow.com


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