Profit margins on median-priced single-family home and condo sales increased from 56.6% in the second quarter to 59% in the third quarter, according to data from ATTOM. This represented the second straight quarterly increase following several declines.
ATTOM also noted this increase occurred as the median nationwide home price shot up by 2% to a new high of $350,000. This uptick reverses a decline that took place from the middle of 2022 to the early part of 2023.
Gross profits on typical single-family home and condo sales across the country also went up during the third quarter by 5% quarterly, to $129,900, and were up 3.2% annually.
“Prices and profits around the U.S. got another boost over the summer as the housing market continued recovering from last year’s setbacks,” said Rob Barber, CEO for ATTOM. “Things do remain uncertain heading into the market’s annual Fall slowdown, especially at a time when mortgage rates are rising again, home affordability is getting tougher and the potential for a recession hangs in the air. But the latest gains fell in line with what we often see during the third quarter and showed that any predictions of an extended market fallback may have been premature.”