Homeowners made a 49.9% profit on typical single-family home and condo sales during the third quarter – up slightly from 49.3% in the second quarter but down from 55.4% in the third quarter of 2024, according to ATTOM.
Prior to 2020, home sellers saw profit margins of around 30%. As the Covid-19 pandemic induced people in search of more space to leave cities and buy homes, profits doubled to more than 60% in mid-2022, the firm says in its third quarter U.S. Home Sales Report.
The typical seller’s return has been dropping steadily since that peak, but over the last three quarters it’s held just below 50%.
Meanwhile, home prices have continued to rise. The median national sales price in the third quarter was $370,000, up 1.2% from the second quarter and up 3.4% from the same time last year.
The typical home sale netted $123,100 in raw profit, up 1.9% from the second quarter but down 3.5% from the third quarter of 2024.
“Profit margins remained steady and high throughout the traditionally busier summer selling season,” says Rob Barber, CEO for ATTOM in the report. “While continuously rising prices could have chased away buyers and slackened demand, the recent dip in mortgage rates may be helping to keep more people in the market.”
U.S. cities that saw the biggest annual drops in profit margins in the third quarter were Ocala, Fla.; Punta Gorda, Fla.; Vallejo, Calif.; North Port-Sarasota, Fla.; and Port St. Lucie, Fla.
Cities that saw the largest increases in home profits included St. George, Utah; Gulfport, Miss.; Augusta, S.C.; Lexington, Ky.; and Dayton, Ohio.
Photo: Alexander Grey