When it comes to making a return on their investment, West Coast homeowners are at the top. According to new data from Zillow, sellers in California, Oregon, and Washington are cashing in big on their properties, with some raking in a nearly 80 percent ROI.
Sellers in Oakland, California, saw the biggest profits in 2016, bringing in an average of $235,000 per sale—78 percent more than they originally put in. Portland, Oregon, sellers came in at No. 2 for profits, with the average seller making 65 percent on their investment—or about $145,000.
It seems staying put benefitted these West Coast sellers as, according to Zillow’s data, “homeowners who lived in their home for about 7.5 years gained almost $40,000 on the sale of their home—24 percent more than what they initially paid.” The average seller in Oakland lived in their property for just over seven years, while Portland sellers stayed a bit longer—around nine years.
No. 3 for most profitable 2016 sales was San Jose, California, where sellers took in a 56.5 percent ROI, and at No. 4 was Denver, with a slightly lower ROI of 56 percent. Los Angeles, Sacramento, and Seattle rounded out the top seven.
Though other West Coasters could certainly take advantage of today’s high-priced market in similar fashion, it seems many are opting to steer clear of the completion.
“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,” Zillow reported. “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.”
Of the cities tracked, Baltimore sellers saw the lowest return on their initial investment bringing in just $5,000 in profits—or 5.4 percent of what they initially put in. Memphis, Tennessee, was next, with $6,800 in profits and a 8.5 percent ROI.