#USA #Irvine #Real Estate #ATTOM #Home Sales

Home Sales Profits Rise as Prices Hit New Heights in 2025

The latest report from ATTOM, a prominent real estate data curator, shows a slight uptick in profits from home sales during the second quarter of 2025. Homeowners enjoyed an average profit of 50% from selling single-family homes and condos. While this figure indicates a modest rise from the 48.9% profit margin in the first quarter, it still falls short of last year's benchmark profit of 55.6%.

Despite witnessing historically high home prices, seller profits experienced a decline in raw dollar amounts compared to a year ago, dropping to $123,000 from $127,990. This trend emphasizes the persistent high pricing in the housing market, where profits have been trending downward since their peak of 64.3% in spring 2022.

Rob Barber, CEO of ATTOM, acknowledged the stagnation in profit growth, stating, "We saw historically high home prices last quarter, but even so, we didn't see a big jump in seller profits. That's a measure of the fact that home prices have been very high for several years now."

Despite the decrease in profit margins year-on-year, the 50% profit from median sales remains favorable, especially in comparison to the pre-pandemic years when sellers typically saw profits of around 30%. In the second quarter of 2025, evaluations showed a rise in profit margins for 49.4% of the 156 metropolitan areas analyzed, with 77 cities recording improvements.

The most substantial year-over-year declines in profit margins happened in locations like Ocala, FL, where it plummeted from 97.6% to 61.8%, and Knoxville, TN, which saw a drop from 105.8% to 81%. However, areas like Hilo, HI reported a commendable profit margin rise, going from 41.4% to 65.7%.

In major urban centers, San Jose, CA, commanded the highest typical profit margins at 101.2%, while New Orleans, LA, recorded the lowest at just 20.5%. The disparity in profit margins highlights the variegated market conditions across the nation, particularly between wealthier coastal cities and struggling southern locales.

The second quarter of 2025 also saw the national median home sale price reach an unprecedented high of $369,000. This figure not only surpasses the previous quarter's $350,000 but also eclipses the prior record of $358,976 set in Q3 2024. The price increase signifies a 5.4% rise from the previous quarter and a 3.1% jump year-over-year.

Markets like Hilo, HI, and Macon, GA, experienced the most pronounced increases in home prices, with Hilo seeing an impressive 32.9% growth. Conversely, markets in Florida, such as North Port-Sarasota and Cape Coral experienced notable price declines.

In a separate finding, the average homeownership tenure has also seen an uptick, now averaging 8.18 years—the longest since the reconsolidation in 1998. This increasing duration suggests that homeowners are remaining in their properties longer due to market uncertainties and rising costs.

Institutional investor purchases held steady at 5.7%, a dip from last year but still indicates an ongoing interest in residential properties. The share of cash purchases declined to 38.9%, suggesting a slight decrease in investor activity compared to previous quarters.

In conclusion, while average profits from home sales in the second quarter of 2025 have shown marginal growth, they undoubtedly reflect current market conditions constrained by high prices. As homeownership tenures extend and cash transactions diminish, the landscape remains dynamic in its capacity to respond to evolving economic pressures.