Home sellers earned a 55.8% profit margin on typical single-family home and condo sales during the second quarter, according to new data from ATTOM. This level is roughly one percentage point above the profit margin recorded in the first quarter but down one point from the second quarter of last year.
ATTOM noted the profit margin’s lack of movement occurred despite the median home price reaching a record high of $365,000 during this spring’s homebuying season. Still, the price surge helped to raise typical raw profits for sellers back over $130,000, which is close to a new record high.
Typical profit margins increased from the first quarter to the second quarter in 94 (58.8%) of the 160 metropolitan statistical areas analyzed by ATTOM, but they also remained down annually in 100 (62.5%) of those metros. They also were down in about three quarters of those areas from the second quarter of 2022, when the nationwide return on median-priced home sales peaked at 64.3%.
“The second quarter profit report offers a mixed bag of plusses and minuses that added up to an overall picture of not much change for sellers,” said Rob Barber, CEO for ATTOM. “Prices jumped back upward, which was great news for owners. So did raw profits. Profit margins also remained historically elevated. But the bottom-line profit-margin trend didn’t move much at all because soaring prices are far from a new thing. Even greater price improvements will be needed to kick margins up over the rest of the year.”
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