Home Sellers in These Cities Are Losing Money
But 96% are getting more than what they paid for their homes.
Home prices remain near their record high, helping the sellers in most markets limit their downside profit margin.
Nationwide, the share of sellers losing money is much smaller (4%), according to a new report from Dana Anderson and Elijah de la Campa at Redfin.
New England sellers are least likely to lose money. Less than 2% of sellers in Providence, RI, and Boston are taking a loss.
The analysis is of county records and MLS data across the 50 most populous U.S. metros. To be included, a home must have been owned by the same party for at least nine months leading up to the sale. “Loss is defined as the seller selling the home for less than what they paid for it.
Dragging down the averages is San Francisco, where nearly one of five (17.8%) homes that sold there during the three months ending Feb. 29 sold at a loss.
Redfin reported that’s comparable with the 17.9% share hit during the three months ending Jan. 31, which was the highest in 11 years.
Other sputtering markets included Detroit at a loss (10.8%) during the three months ending Feb. 29, followed by Cleveland (8.2%), St. Louis (8.1%), and Chicago (7.9%).
Of the 96% of sellers who are earning money on their sale nationally, the median gain is $196,016. That figure is because the median US home-sale price is just 5% below the all-time high set in mid-2022.
The median U.S. sale price is more than $100,000 higher (+40%) than before the pandemic began, Redfin reported.
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