South Florida home sellers made big profits in 2022
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.
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