Profit margins on median-priced single-family home and condo sales in the U.S. decreased to 55.3% in the first quarter – the lowest level observed in more than two years, according to ATTOM’s recently released Q1 2024 U.S. Home Sales Report.
That’s down from 57.1% in the fourth quarter of 2023 and from 56.5% a year ago, coincided with a quarterly 4.3% drop in the median nationwide home price, down to $330,000.
Although prices typically retreat during the slower winter home-selling season, the recent decline represents one of the most significant quarterly drops in the past decade, the firm says.
Concurrently, investment returns for sellers have decreased for the second consecutive quarter following several rises last year, reaching their lowest point since mid-2021.
Despite the decline in seller returns, they continued to outperform most of the housing market boom observed over the past decade. This trend persisted in the early months of 2024, evidenced by the typical gross profit of $120,500 on home sales nationwide.
Typical profit margins – the percent difference between median purchase and resale prices – declined from the fourth quarter of 2023 to the first quarter of 2024 in 89 out of 134 metropolitan statistical areas across the U.S., accounting for 66% of the total.
Additionally, they experienced an annual decrease in 71, or 53%, of those metros.
Photo: Alexander Grey
