Homeowners who sold their homes during the first quarter on average made less profit compared with those who sold in the fourth quarter and first quarter of 2024, according to ATTOM.
The firm’s U.S. Home Sales Report shows that homeowners who sold in the first quarter made, on average, a 50.2% profit – down 3.2 percentage points from the previous quarter and down 4.8 percentage points from the first quarter of 2024.
The national median profit margin for home sales has decreased slightly almost every quarter since the summer of 2022, but it still remains well above pre-pandemic levels, the firm says in its report.
The national median home sale price has held steady for the last two quarters at $355,000.
That’s down from a historic peak of $358,000 in the third quarter of 2024.
However, the median raw profit that sellers made on their homes dropped about 4% to $119,000, down from about $124,000 in the fourth quarter of 2024.
“Sellers may not be enjoying quite the same windfall they were a few years ago but by historical standards profits are strong, both in terms of margins and raw dollar value,” says Rob Barber, CEO for ATTOM, in the report. “The first quarter also tends to be the weakest of the year, so don’t be surprised to see profits regain ground during the summer months.”
Barber adds that “the dip in profits has affected homes across the price spectrum and country, but several communities in Florida and California saw the biggest drop offs.”
Photo: Richard Horne