Sellers who sold their homes during the Covid-19 pandemic pulled in record-high profits, according to a recent study by ATTOM Data Solutions.
On average sellers who sold in the second quarter of 2020, while the pandemic was at its peak, profited by 36%, which translates to a median $76,000 gain over what they originally paid for the property. It’s also just over 14% more than what sellers made in the second quarter of the year.
These findings included sale deeds, foreclosure filings, and loan data in 1,000 metropolitan areas where there had been 1,000 or more single family homes and condos for sale in the second quarter.
The high profits are due to a scarcity of demand. The housing market was short in inventory before the pandemic, and those on the market pulled their homes off of it as the pandemic grew.
However, despite the economic headwinds caused by the pandemic, the market began to surge forward as sellers began to realize the virus did not damper buyer demands. This was due to the record low mortgage rates, as low as 3%. Thus spurred buyers to take action quickly. This combined with those in quarantine who realized they needed more space meant the seller’s market was taking a turn.
The buyers began bidding up the prices on the homes, meaning more money for the sellers.
The area across the nation that saw the most seller success is Spokane, WA and the least successful was Pittsburgh, PA, where profit actually dropped from the previous year.
Although seller’s profted altogether according to the data in this national survey, some metropolitan cities faltered as buyers began wanting to move out of rural areas. This is partially due to coronavirus health and safety concerns associated with large crowds in big cities.
Sources Cited: Realtor.com