Still rising home prices fuel big seller profits in third quarter!
With home prices still on the rise, seller profits jumped during the third quarter of 2021, hitting their highest level since the end of the Great Recession.
That’s according to Attom Data Solutions, which reported that profit margins on median-priced single family home sales sprang to 47.6% during Q3, growing from 42% in the second quarter and 34.5% in Q3 2020 to reach the largest profit margin in 10 years.
The return-on-investment gains realized in the third quarter marked the biggest quarterly jump since 2014, as well as the biggest annual growth since at least 2008.
With the national median home price hitting a record $310,500, the typical home sale during the third quarter generated $100,178 in profit, also a new all-time high. That’s up from $88,800 in the second quarter and from $69,000 in the third quarter last year. Median home prices grew year over year in an astounding 93% of U.S. metro areas with enough data to evaluate, with profit margins rising in 86% of those same metros. Month over month, margins are up in 82% of metros.
“The third quarter of this year marked another period in a banner year for a housing market boom that's steaming ahead through its 10th year,” said Todd Teta, chief product officer at Attom. By Arnie Aurellano,Website content editor, Scotsman Guide