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A total of 3.9 million homes were sold during 2025, with a record high national median sale price of $360,000. According to data from ATTOM, last year’s median sale price was up 2.6% year-over-year and 39% higher than 2020.

But while prices reached a new peak in 2025, profit margins fell short. The typical home generated $118,710 in gross profits, resulting in a 49% return on investment. That was down from a gross profit of $124,500 and a profit margin of 55% in 2024.

Median sales prices were up year-over-year in 80.5% (107) of the 133 metropolitan statistical areas analyzed by ATTOM; metro areas were included in the report if they had populations over 200,000 and at least 5,000 sales. The metro areas that saw the largest year-over-year increases in home prices were Birmingham, Alabama (median sales price up 12.9%); Syracuse, New York (up 11.6%); Toledo, Ohio (up 10.4%); Rochester, New York (up 10.3%); and Dayton, Ohio (up 10.3%).

Institutional investors were responsible for only 6.6% of last year’s home purchases, unchanged from one year earlier.

“Home prices kept climbing in 2025 even as affordability challenges intensified for households across the country,” said Rob Barber, CEO of ATTOM. “While sellers continued to command record prices, profit margins have been declining for three consecutive years since peaking in 2022, suggesting the market may be gradually normalizing after a period of strong returns. Recent declines in mortgage rates likely provided some relief for prospective buyers, but with prices at record highs and ownership tenures stretching longer, that relief may be limited.”