Home Sellers’ Profit Margins Dip, ATTOM Finds

(Illustration courtesy of ATTOM)

The ATTOM third-quarter 2024 U.S. Home Sales Report showed that sellers’ profits dipped by one percentage point from the second quarter of 2024 and two points from a year ago.

“The nationwide investment return ticked downward as home-price spikes that had buoyed the housing market during the spring of this year flattened out, leaving the U.S. median home value virtually unchanged at about $360,000,” the report said. “While home-seller profits remain historically high, the national margin has declined almost every quarter from a 64% peak hit in 2022.”

The leveling off of prices during the third quarter also led to typical raw profits for sellers staying about the same, near a record high of just under $130,000.

“The latest price and profit numbers provided another round of generally good news for homeowners, tempered by a bit of a downside,” ATTOM CEO Rob Barber said. “Home values remained at or near record levels around large swaths of the country, keeping seller profits far above historical levels. At the same time, though, the housing market settled down after a big second quarter, which extended a slow fallback in profit margins that started last year. If history is a good guide, the fourth quarter is likely to bring more of the same as the peak buying season ends.”

Barber noted this trend does not indicate that the long market boom is ending. “But there certainly are forces that could cut either way, especially as affordability remains a challenge for so many potential buyers,” he said.