fbpx

Home-Seller Profits Rose in 2022, Despite Market Slowdown

12.02.23

Home sellers across the US realised a profit of $112,000 on the typical sale in 2022, up 21% from $92,500 in 2021 and up 78% from $63,000 two years ago, according to a new report from ATTOM.

ATTOM’s Year-End 2022 U.S. Home Sales Report found that despite a market slowdown in the second half of last year, profits rose from 2021 to 2022 in 98% of housing markets with enough data to analyse. The latest nationwide profit figure, based on median purchase and resale prices, marked the highest level since at least 2008.

The report also found that the $112,000 profit on median-priced home sales represented a 51.4% return on investment compared to the original purchase price, up from 44.6% last year and from 32.8% in 2020. The latest profit margin also represented a high point since at least 2008.

ATTOM found that raw profits on median-priced home sales topped $100,000 in 50% of the 157 metro areas. The West region had 17 of the top 20 raw profits, led by San Jose, California ($621,000); San Francisco, California ($473,000); Seattle, Washington ($304,063); San Diego, California ($295,500) and Los Angeles, California ($272,500). The smallest raw profits were mainly in the South and Midwest, reflecting lower home prices in those areas than elsewhere. Those regions had 19 of the 20 lowest profits on typical sales, led by Columbus, Georgia ($19,000); Shreveport, Louisiana ($20,000); Beaumont, Texas ($22,991); Rockford, Illinois ($34,500) and Davenport, Iowa ($38,500).

“It seems pretty likely that home seller profits peaked for this cycle in 2022,” said Rick Sharga, executive vice president of market intelligence at ATTOM. “Median prices have declined on a monthly basis since mortgage rates doubled between January and October and are likely to decline further in many markets across the country in 2023, reducing profitability for home sellers.”

ATTOM also found that nationwide, all-cash purchases accounted for 36.1%, or one of every three single-family home and condo sales in 2022. The latest percentage – the highest since 2013 – was up from 34.4% in 2021 and from 22.7% in 2020. Among those metro areas with a population of at least 200,000 and sufficient cash-sales data, those where cash sales represented the largest share were Augusta, Georgia (72.1%); Columbus, Georgia (69%); Athens, Georgia (60.6%); Flint, Michigan (59.5%) and Gainesville, Georgia (58.9%).

“Cash buyers – many, but not all of whom are investors – are in a position of competitive advantage in today’s higher interest rate environment, and will continue to account for a higher-than-usual share of market at least until mortgage rates dip back down a bit. With affordability a problem for many buyers – especially first-time buyers – it wouldn’t be a surprise to see the percentage of cash purchases actually increase in 2023,” Sharga added.

www.attomdata.com

Source: rismedia.com]

Abode Affiliates

  • Alleyne Real Estate
  • Blevins Franks
  • Coldwell Banker
  • Crane Resorts
  • Monaco Real Estates
  • RDO
  • St Francis Links
  • Unique Home Stays
  • Yoo
  • Worldwide Dream Villas
  • Enigma Yachts Limited
  • Cornerstone Tax Advisors
  • Pedini London
  • Alexander James
  • Moore Stephen
  • Ibiza Transit Express
  • Oyster Yachts
  • Jumeirah
  • Wall Street Luxury
  • Heron Real Estate
  • Edenhurst
  • MG&AG
  • Gama Property
  • Touch Design Group
  • St Edward
  • Ultra Villa
  • Luxury Italian Living
  • Habitat First Group
  • BDO
  • 7Storeys
  • Worldwide Property
  • Dimora
  • Dominic McKenzie Architects
  • Harry Manning
  • Smart Living
  • Isle Blue
  • MAS Marbella
  • Millgate
  • Jersey Finance
  • guernsey-relocations-logo
  • viberts-logo
  • kpmg-logo
  • author-interiors
  • Wilkinson Beven
  • BoConcept
  • Ante Vrban
  • Deborah Garth
  • You home
  • Ra Shaw Designs
  • Caudwell Collection
  • accanto-interiors
  • Fritz Hansen
  • capital-rise
  • jarrods-staircase
  • neil-davies-logo
  • Tina Shone Group
  • Taplow riverside
  • Aimo
  • ns-ceramics-logo
  • Rusk
  • Consilium Expert Group
  • Ben Krupinski Builder
  • Swoffers
  • Guernsey Relocation Services
  • Douglas Graneto
  • Strutt & Parker
  • wilsons
  • MJC Associates
  • plainspace
  • Fine & Country
  • Bramble Ski
  • Penthouse queen
  • Sarco_Affiliate_Logo
  • taylor wimpey
  • cooper-gardner
  • M Design Architects
  • codan
  • Lovells
  • London DE
  • HELENA JORNET FINQUES
  • Prime Lands Group
  • Bellegarde Estates
  • Sinclair
  • Pippa Paton
  • Ecole d'Humanite
  • Benedek Lewin
  • Inspired Villages
  • Huelin Homes
  • Gaudin
  • Lovells Property
  • Racecourse Lodge Logo
  • Paseo
  • Lemay + Escobar
  • Octagon
  • Locate Isle of Man
  • Newlands of Stow
  • Hawksford
  • Holdun
  • Schule Schloss Salem
  • AR Architecture
  • lazaro
  • Sella Concept
  • Blakstad
  • SAREG
  • miller interior
  • Wealth Club
  • Yellow House Architects
  • Designer Touches
  • Zafiro
  • Nicole Murray
  • Scout Boats
  • Emerson Insinkerator
  • Forsters
  • https://www.cullenhomes.co.uk
  • https://www.londonlight.works

Enter your dream destination