Home seller profits down in most metros despite record sale prices

"Sellers typically earned $123,100 per sale, a 1.9% increase from the prior quarter but 3.5% below the figure seen in Q3 2024. Profit margins remained steady and high throughout the traditionally busier summer selling season, said Rob Barber, CEO of ATTOM. While continuously rising prices could have chased away buyers and slackened demand, the recent dip in mortgage rates may be helping to keep more people in the market."

"Profit margins declined on a quarterly basis in nearly 59% of the 157 metro areas analyzed and they dropped year over year in more than 84% of them, according to the report. Florida markets saw some of the steepest declines including Ocala, down from 103.9% to 55.1%; Punta Gorda, down from 88.3% to 58%; and North PortSarasota, down from 61.1% to 38.8%. Some metro areas saw improvement. St. George, Utah, rose from 26.3% to 37.2%; Gulfport, Mississippi, climbed from 26.2% to 35.7%."

"Among metros with more than 1 million residents, the sharpest annual declines came in Tampa (down from 70.7% to 54.3%); Seattle (down from 93.6% to 80.2%); and Boston (down from 81.8% to 70). Just over half of all metro areas posted profits margins above 50% in the third quarter. The highest profits among large metros were in San Jose (94.3%); Seattle (80.2%); and Buffalo, New York (80%). Texas cities saw some of the lowest returns."

Sellers typically earned $123,100 per sale in Q3, a 1.9% quarter-over-quarter increase and 3.5% below Q3 2024. Profit margins stayed steady and high during the summer selling season, and a recent dip in mortgage rates may be helping to sustain buyer activity. The national median sales price rose 1.2% from Q2 and 3.4% year over year to $370,000, marking a second consecutive record high. Profit margins fell quarterly in nearly 59% of 157 metros and declined year over year in over 84%. Some Florida metros experienced steep drops, while several smaller metros showed gains. Large metros displayed mixed outcomes, with San Jose, Seattle and Buffalo among the strongest margins and multiple Texas cities among the weakest.

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