According to ATTOM’s recently released Q3 2023 U.S. Home Sales Report, profit margins on median-priced single-family home and condo sales in the U.S. increased to 59 percent – the second straight quarterly increase following several declines.
ATTOM’s latest home sales analysis reported that the improvement in typical profit margins, from 56.6 percent in Q2 2023, came amid a continued rebound in the U.S. housing market that pushed the median nationwide home price up 2 percent to a new high of $350,000.
The report noted that both the nationwide profit margin and median home price have increased since an unusual decline from the middle of 2022 to the early part of 2023 that had threatened to reverse a decade-long market boom.
Also according to the report, gross profits on typical single-family home and condo sales across the country also went up in Q3 2023, rising 5 percent quarterly, to $129,900, and 3.2 percent annually.
ATTOM’s Q3 2023 home sales analysis reported that typical profit margins – the percent difference between median purchase and resale prices – increased from Q2 to Q3 2023 in 55 percent of the U.S. metro areas analyzed. The report noted that, however, they were still down annually in 66 percent of those metros, as the recent improvements were not enough to wipe out the earlier losses.
The third-quarter sales report recently released by ATTOM also stated that the biggest quarterly increases in typical profit margins – among metro areas with sufficient population data and at least 1,000 single-family home and condo sales in Q3 2023 – came in the metro areas of: Scranton, PA (margin up from 72.2 percent in Q2 2023 to 92 percent in Q3 2023); Reading, PA (up from 70.3 percent to 88.5 percent); Flint, MI (up from 66.7 percent to 84.6 percent); Evansville, IN (up from 32.9 percent to 45.9 percent) and Roanoke, VA (up from 44.4 percent to 56.3 percent).
In this post, we dive deep in the data behind ATTOM’s Q3 2023 home sales report to uncover the complete list of the top 10 U.S. metros with the biggest quarterly increases in typical profit margins in Q3 2023. Those metros rounding out the top 10 include: Syracuse, NY (up from 51.1 percent to 62.4 percent); Kalamazoo-Portage, MI (up from 67.8 percent to 77.7 percent); Birmingham-Hoover, AL (up from 41.2 percent to 50.9 percent); Lansing-East Lansing, MI (up from 50.1 percent to 59.6 percent); and Salisbury, MD-DE (up from 48.7 percent to 57.9 percent).
WATCH: ATTOM Top 10 Housing Markets with Biggest Quarterly Increases in Profit Margins in Q3 2023
ATTOM’s latest home sales report also found that homeowners who sold in Q3 2023 had owned their homes an average of 7.86 years, which marked the second highest point since 2000. The latest figure was up from 7.6 years in Q2 2023 and from 7.21 years in Q3 2022.
According to the report, average tenure was up from Q3 2022 to the same period this year in 96 percent of metro areas analyzed. The report noted the largest annual increases were in Santa Barbara, CA (tenure up 32 percent); Madera, CA (up 27 percent); Santa Rosa, CA (up 27 percent); Truckee, CA (up 24 percent) and Santa Cruz, CA (up 21 percent).
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