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San Jose home sellers enjoyed largest profit in 2017

San Jose home sellers enjoyed largest profit in 2017

By Ron Trujillo/ron@calhomenews.com

Timing is definitely everything when it comes to buying and selling homes — and enjoying a nifty profit.

Just ask homeowners who sold their homes last year in the Bay Area, or really in many of the major regions in the state.

The average San Jose-area homeowner enjoyed a $296,000 profit in 2017, easily the largest gain in the nation, according to a Zillow report. In fact, the average San Jose homeowner’s profit was about seven times more than the $39,000 nationwide.   

San Francisco homeowners who sold last year had the second-largest gain in the nation, at $222,000, followed by third-place Los Angeles at a distant $137,000. Seattle finished in fourth place at $123,000, while San Diego ranked No. 5 at $108,000.

California had six of the 10 best-performing markets in the nation, with Sacramento (No. 7) at $78,000 and Riverside (No.9) at $60,000.

Zillow looked at major metros for the report, but noted that Mountain View — home of Google — homes sold netted their homeowners a $600,000-plus profit, more than double the original price.

California can boast some of the biggest gains, but the Golden State only had two cities — San Jose and San Francisco — among the top five nationwide with the largest percentage increases. San Jose homeowners who sold last year reported a 53.8% profit, the largest in the nation, followed by San Francisco at 45.5%.

However, the fast-rising prices are greatly hurting home shoppers, as many are already priced out of the San Jose market. San Jose had the highest real home price increase in the nation at almost 19% in April, according to First American Financial Corp. Real home price increase considers price gains and wage and income growth.

Photo of San Jose skyline by Stellamc/Shutterstock

Millionaire real estate madness

Want to become a millionaire? Buy low and sell high.

It works on Wall Street — and apparently many streets in California, according to a new report.

In fact, San Francisco had the most real estate millionaires since 2000, with homeowners buying low and netting a $1 million-plus profit or more when selling their home. San Francisco had 381 homeowner millionaires during the past 18 years, followed by Manhattan, N.Y.

California had 13 of the 31 top-ranked cities where homeowners turned their homes into million-dollar or more properties, according to PropertyShark.

Los Angeles had 280 homeowner millionaires, the fourth most in the nation. San Jose — the center of Silicon Valley — finished at No. 7, with 199 homeowner-turned-millionaires. Bay Area cities and Newport Beach in Southern California finished at Nos. 14-19, giving California almost half of the 31 homeowner-turned-millionaire markets n the nation.

Check out the complete list at PropertyShark.

Grab a friend, buy a house

More buyers are combining dollars to open the door to homeownership in high-cost regions in California.

Co-buyers accounted for almost half (48.3%) of home sales during the first quarter in San Jose, easily the largest percentage of co-buyers in the nation, according to ATTOM Data Solutions. San Francisco had the second-largest percentage of co-buyer during the first three months of the year, at 37.9%.

Co-buyers are couples who are not married, so it could be romantic partners, close friends, families or even siblings (you better get along) who combine their dollars for the down payments and closing costs as well as the monthly mortgage payments.

In San Jose and San Francisco, co-buyers are, on average, plunking down payments of 24%, giving them upfront equity and lower payments going forward.

But co-buyers are not just limited to the Bay Area, they are increasing in Los Angeles-Long Beach (27.1% of overall home sales), Santa Barbara County (23.4%) and San Diego (22%).

Co-buying is less common in the Central Valley, accounting for 14% to 18% from Bakersfield to Fresno. However, Modesto — a major commuter city to the Bay Area — had 23.4% of sales by co-buyers, according to the ATTOM Data report.

As home prices soar nationwide, co-buying is becoming more popular, accounting for 17.4% of sales during the first quarter, compared to 16.3% a year ago — and 14.9% in first-quarter 2016.

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