Homeowners, on average, made a 50.2% profit selling single-family homes and condos during the first quarter, according to new data from ATTOM. This is a decline of 3.2 percentage points from the previous quarter and a drop of 4.8 percentage points from the first quarter of 2024.
Although the national median profit margin for home sales has declined slightly almost every quarter since the summer of 2022, ATTOM noted it remains above pre-pandemic levels.
The national median home sale price, which peaked at $358,000 in the third quarter of 2024, held steady for the last two quarters at $355,000. However, the median raw profit that sellers made on their homes dipped by 4% from about $124,000 in the fourth quarter of 2024 to $119,000 in the first quarter this year.
Typical profit margins dropped quarter-over-quarter in 99 (77%) of the 128 metropolitan statistical areas that had at least 1,000 home sales during the first quarter. Compared to the same time last year, typical profit margins fell in 106 (83%) of the 128 metro areas.
“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,” said Rob Barber, CEO for ATTOM. “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 noted that “several communities in Florida and California saw the biggest drop offs.” Indeed, the biggest year-over-year decreases in typical profit margins during the first quarter came in Punta Gorda, Florida (down from 106.3% to 69.2%); Ocala, Florida (down from 99.9% to 66.7%); Deltona, Florida (down from 81.6% to 54%); Bakersfield, California (down from 81.1% to 58.9%); and Spartanburg, South Carolina (down from 49.4% to 29.6%).
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