Even though the return on investment and time may not be as strong as it has been for a few of the past quarters, those people who have bought and sold real estate over the last 7 years have killed it!
Making $34K Per Year
Marketwatch reported that, “Some Americans who bought their homes between seven and nine years ago have made up to $235,000 over that time selling their home, or $34,000 per year, making a final return on their investment of 78%. That’s the median amount of money home sellers made after 7 years and 3 months in Oakland, Calif., real-estate site Zillow found. In Portland, Ore., sellers last year sold for $145,000 more than what they had paid 9 years earlier, a 65% gain.”
Still, the market is projected to trend higher by at least 5-7% over the next 12 months, as stated by numerous agencies. The Marketwatch story reported, “If you bought a home for $110,000 and spent $30,000 renovating it, most homeowners would want to sell it for around $200,000 to make it worth their while.”
That is making the real estate market the Gold Rush of the decade.
In 2016, 193,000 single-family homes were flipped. This compares with 276,000 homes flipped in 2006, which seems to suggest that we are still far from Bubble-Territory.