IRVINE, CA — ATTOM’s third-quarter 2024 U.S. Home Sales Report reveals that homeowners enjoyed an average profit margin of 55.6% on sales of single-family homes and condos. Although this figure represents a slight decline from both the previous quarter and the same period last year, it remains historically high. This drop coincides with the plateauing of home prices, with the U.S. median home value holding steady at approximately $360,000.
Despite the downturn, raw profits for home sellers remained near record levels, averaging just under $130,000. However, profit margins decreased in half of the 156 metropolitan areas analyzed from the previous quarter, with a more significant annual decline in three-quarters of these regions. The most notable yearly declines occurred in San Francisco, CA, and several other metro areas.
Meanwhile, investment returns on home sales exceeded 50% in 68.6% of the markets studied. San Jose, CA, led major metro areas with a return of 109.8%. Conversely, New Orleans, LA, and several Texas cities posted the lowest returns among large metros.
In terms of cash sales, these transactions accounted for 37.2% of all home sales in the third quarter, a slight dip from the previous quarter. Institutional investments, representing sales to entities purchasing at least 10 properties annually, also saw a decrease, comprising 6% of all sales.
The report highlights ongoing challenges in housing affordability, yet underscores that home prices have largely held their ground at record highs, offering some stability for sellers. As the housing market adjusts post-peak buying season, the trends in cash sales and institutional investments will be closely watched as indicators of broader economic health.
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