Real Estate Investment

Real estate gains at a 12 year high in 2018!

eisenhauerteam Real Estate , Vancouver Real Estate Leave a Comment

Sellers made an average home price gain of $61,000!

Seller Profits 2019

That $61,000 equals a 32% return on investment…  

The real estate price gain is the amount of positive value gained since purchase.  In 2016 sellers saw a gain of $39,500, and in 2017 they saw a gain of $50,000.  Things have been on an upward climb since 2014, and are finally reaching a “recovery” level.  People are finally making money on their real estate investments at a rate that is more in-line with what we are used to seeing historically in the US.

A price loss would be what we saw from 2008-2013.  It started out slowly dipping into the “red” and then after bottoming out in 2011, started to quickly recover into the “black”.   We love to see the real estate recovery going strong!  What we love even more is that it’s stabilizing.  Stability is good for everyone in a real estate market.  It means that our sellers make money, the buyers can trust their real estate investments, and banks feel more confident lending to qualified borrowers.  Balance can be a very good thing for real estate.

Did you know that on average in 2018, 3 out of every 10 home purchases was CASH ONLY!?

This may seem intimidating for buyers, since this was their competition in an already competitive real estate market – but again, it’s all about balance.  Cash buyers don’t walk away from their homes like many had to during the last market crash.  These are strong buyers.  Real estate investors who bought with cash in 2018 are most likely to keep those homes in their portfolios for a longer period of time.  Distressed real estate sales are at an 11 year low as well.  Only 12.4% of all real estate transactions in 2018 were distressed properties (including bank owned and REO) – this is down drastically from the peak in 2011 at a whopping 38.6%.

So, if you are thinking about selling your home in 2019 – what should you expect?

Predictability, Stability and Balance.  We all love to invest hundreds of thousands of our hard-earned dollars, only to turn around and lose it.  Right?  I’m kidding.  Absolutely nobody like that.  So having confidence in the market, on both the buyer and seller sides, is a very welcome change.  After all, once you complete your transaction as a seller, you start another one as a buyer!  So balance means you will win on both fronts.  Just good old-fashioned real estate investments, without the song and dance.

*data provide by ATTOM Data Solutions 2019

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