If you own a home in the top 10 metro real estate markets in the United States, it can be worth a lot more than what you paid for, even if you bought it just a few years ago.
The median selling price of a home in those areas has jumped 57% on average over the past four years, according to new data from Realtor.com.
It’s a feat that would normally have taken 10 years to achieve, Danielle Hale, chief economist at Realtor.com, told USA TODAY.
âIf you’re a relatively new homeowner, you might be surprised to learn that you could sell your home and make money much sooner than you expected,â Hale explains.
Realtor.com has looked at the 300 largest metropolitan areas and ranked them based on their selling price increases since 2017. The median time these listings stay on the market has dropped by 30 days and these homes are selling. now in 25 days.
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Leading the pack is Boise City, Idaho, where the median price jumped 72% to $ 385,000 from $ 224,000.
The market with the highest median price was the Stockton-Lodi, Calif. Area at $ 460,000, a 51% increase from January-February 2017 to the same period in 2021.
Affordability was a key factor in markets that saw price increases.
The most significant price increases have occurred near major Western cities which are technology hubs. Besides Boise City, other warm metropolitan areas exhibiting these characteristics include Spokane, Washington, and Ogden, Utah.
âBoise attracts a lot of people from major California markets like San Francisco and San Jose,â says Hale. âThe climate is similar, the prices are much more affordable and there is a lot of outdoor activities.â
The list includes cities in the western, midwestern, and southern states, including Arizona, California, Colorado, Florida, Indiana, North Carolina, Utah, and Wisconsin.
A recent survey from Realtor.com found that 10% of homeowners plan to list their home this year, and more than a quarter (26%) plan to do so in the next three years. One of the main drivers was to make a profit in today’s market.
In today’s seller’s market, where multiple offers on homes are now the norm, 29% of potential sellers expect to price the list above what they think the home is worth, according to the survey .
Hale says it typically takes three to five years for a landlord to break even when buying costs make sense compared to renting.
The median selling price of an existing single-family home climbed 18.4% to $ 334,500 in March, marking an all-time high, according to the National Association of Realtors. Housing stock stood at 1.07 million units at the end of the month, down 28% from the previous year.
Markets with the most significant price gains:
Swapna Venugopal Ramaswamy is Housing and Economics reporter for USA TODAY. Follow her on Twitter @SwapnaVenugopal