South Florida home sellers made big profits in 2022
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South Florida residents who sold their homes in 2022 raked in the biggest profits on average in recent years.
Driving the news: The typical profit from home sales in the Miami-Fort Lauderdale-Palm Beach area was $159,300 last year, according to figures released last week from real estate data insights firm ATTOM.
- That's up from $105,00 in 2021 and $95,000 in 2020.
Why it matters: If you're planning to sell your property this year, don't expect more of the same. Researchers say Americans likely saw a peak in profits last year.
- High interest rates and home prices are causing the market to slow, so profitability probably won't be as strong in 2023, ATTOM forecasts.
Yes, but: South Florida is outperforming most of the country. The region's average home seller profits in 2022 were well above the national average of $112,000.
The big picture: The report illuminates the huge hike in home values the past two years, as well as the importance of market timing. Nationwide, the median home price increased 10% in 2022, to a record $330,000.
- In South Florida, the median price was $407,000 — up from $350,000 in 2021 and $305,000 in 2020.
- Sellers here had owned their homes for an average of almost 7 years, per fourth-quarter data last year.
Flashback: In 2009, amid the Great Recession, South Florida sellers lost an average of $90,000 when they sold.
- In 2014, the market turned, and sellers profited by $10,000 on average. Profits then kept going up.
The latest: Last year, Miami home sellers averaged a 64% return on investment, up from 42.9% the year prior.
- Nine of the 10 largest increases in investment returns in the U.S. were in Florida, led by Fort Myers, where ROI was up to 85% last year, from 51% in 2021.