According to ATTOM’s recently released Q3 2024 U.S. Home Sales Report, homeowners in the U.S. saw a 55.6 percent profit margin on typical single-family home and condo sales during the third quarter. This represents a slight decrease, with the margin dropping by one percentage point compared to the second quarter of 2024 and two points from the same period last year.
WATCH: ATTOM Top 10 Metros with Highest Institutional Investor Sales Share in Q3 2024
ATTOM’s latest home sales analysis indicated that the nationwide investment return dipped as the sharp rise in home prices that boosted the housing market earlier this spring leveled off, keeping the U.S. median home value steady at around $360,000. Although home-seller profits remain historically strong, the national profit margin has gradually declined nearly every quarter since reaching a peak of 64 percent in 2022.
The report noted that profit margins—the percentage difference between median purchase and resale prices—either remained flat or decreased from the second to the third quarter of 2024 in 79 of the 156 U.S. metropolitan areas with sufficient data, representing 50.6 percent of those markets. Annually, margins were down in 112 of those metros (71.8 percent) and have declined in a similar proportion since the second quarter of 2022, when the nationwide return on median-priced home sales peaked at 64.3 percent.
Also, according to the report, despite the downward trend, returns on investment for median-priced home sales in the third quarter of 2024 remained above 50 percent in 107 metro areas, or 68.6 percent of those analyzed. This is a slight drop from three-quarters of the areas in the same period last year, but still significantly higher than the 13 percent recorded five years ago.
The analysis also revealed that the dollar amount of raw profit on median-priced home sales across the nation fell by 0.9 percent between July and September of this year, settling at $128,700. However, this figure was still 2.7 percent higher than in the third quarter of 2023 and remained close to the record high of $135,000 set in 2022.
ATTOM’s Q3 2024 home sales analysis cited that institutional investors made up 6 percent, or about one in every 17 single-family home and condo sales, across the U.S. in the third quarter of 2024. This is a slight decrease from 6.2 percent in the second quarter of 2024 and 6.6 percent in the same period last year.
The third-quarter sales report recently released by ATTOM also stated that among states with sufficient data to analyze, Alabama had the highest percentage of sales to institutional investors in the third quarter of 2024, accounting for 9.1 percent of all transactions. It was followed by Tennessee (8.9 percent), Oklahoma (8.4 percent), Georgia (8.2 percent), and Texas (8.1 percent).
In this post, we dive deep in the data behind ATTOM’s Q3 2024 home sales report to uncover the top 10 U.S. metros with the highest institutional investor sales shares in Q3 2024. Those metros rounding out the top 10 include: Memphis, TN (15.1 percent institutional investor sales); Yuma, AZ (13.5 percent); Montgomery, AL (12.2 percent); Huntsville, AL (11.8 percent); Amarillo, TX (11.6 percent); Oklahoma City, OK (10.4 percent); Birmingham, AL (10.2 percent); Indianapolis, IN (10 percent); Kansas City, MO (10 percent); and Columbus, GA (9.8 percent).
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