Home Sellers Are Turning Huge Profits In San Francisco, CA

San Francisco CA

09 December, 2021

11:25 AM

Description

24/7 Wall St. San Francisco 2021-12-08 Home values are rising at historic rates in the United States. The median home price hit an all time high of $310,500 in the third quarter of 2021, 16% higher than it was the same period the previous year, according to ATTOM Data Solutions, a real estate and property data provider. Surging home values are partially a product of growing demand, which is fueled in part by low mortgage rates. These conditions have created a seller's market unlike anything seen in recent memory. Nationwide, the profit margin — the change between purchase and resale prices — on median-priced single-family homes sold in the third quarter was 47.6%, equivalent to a profit of $100,178. In many cities across the country, third quarter profit margins eclipsed the national median by a wide margin. In the San Francisco-Oakland-Hayward metro area, located in California, the typical home sale in the third quarter of 2021 generated a 63.6% profit for the seller — the 29th highest profit margin among U.S. metro areas considered. In dollar terms, the typical area home sold for $388,000 more than it was purchased for. Unlike most places where sellers are turning the largest profits, home values in the San Francisco metro area have slumped in recent months. The typical home in the area sold for $995,000 in the third quarter of 2021, down 2.0% from the median sale price of $1,015,000 the previous quarter and only marginally higher than the median sale price of $965,000 in the third quarter of 2020. All data in this story was provided by ATTOM Data Solutions. All U.S. metro areas with populations of at least 200,000 and at least 1,000 single-family home and condo sales in Q3 2021 were considered.     Can't see the article's infographic? Click here to view the original story.This story was originally published by 24/7 Wall St., a news organization that produces real-time business commentary and data-driven reporting for state and local markets across the country.