“The greater Seattle area saw the fifth highest average home price percent gain since purchase in 2016 in the country — a quite remarkable data point — and one which demonstrates the strength of the area’s economy,” said Matthew Gardner, chief economist, covering the Seattle market. “However, despite this rampant price growth, very few home owners are cashing in on these gains, as listing inventory remains at levels not seen since the late 1990s. Those who are taking advantage of the market are primarily banking their gains and buying another home locally rather than moving to less expensive areas. As long as the Seattle economy continues to outperform the nation, the region will continue to remain high on the list of bullish markets.”
Home sellers in 2016 realized biggest average profits since 2007
Homeowners who sold in 2016 realized an average home price gain since purchase of $38,206, which translated into an average 21 percent gain since purchase, up from an average 13 percent gain in 2015 to the highest since 2007, a nine-year high.
Among 201 metropolitan statistical areas with a population of at least 200,000 and sufficient home price data, those with the highest average percent gain since purchase for home sellers in 2016 were San Francisco, California (69 percent); San Jose, California (69 percent); Santa Rosa, California (52 percent); Los Angeles, California (49 percent); and Seattle, Washington (48 percent).