Profit margins increased in the second quarter of this year to 47.7%.

For the first time in a year, profit margins on median-priced single-family home and condo sales in the United States increased, according to a report from ATTOM. The Irvine, Calif.-based curator of land, property, and real estate data released its 2023 U.S. Home Sales Report, showing that profit margins increased in the second quarter of this year to 47.7%. The improvement in typical profit margins, from 43.9% in the first quarter of 2023, came amid a rebound in the U.S. housing market that pushed the median nationwide home price up 10% quarterly to a record $350,000. Both the nationwide profit margin and median home price increased after three straight quarterly drop-offs that had begun to reverse a decade-long market boom, ATTOM said. Even as seller fortunes turned around in the second quarter, the typical investment return nationwide remained below the recent high point of 53.2%, recorded during the second quarter of 2022. “Just when it looked like the housing market was flattening out, prices spiked again, which pushed seller profits back up to nearly their highest level in the past decade,” said ATTOM CEO Rob Barber. “Stable mortgage rates, an ongoing tight supply of homes for sale, and the usual springtime surge in buyer demand appeared to have combined to halt the downturn we started seeing a year ago.” Barber said it’s far too early to predict another long-term price run-up, “especially since buying a home is a financial stretch for so many households around the country. But the second-quarter numbers clearly show the market has more steam left in it, and sellers are reaping the benefits.” 

Source: National Mortgage Professional