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According to ATTOM’s newly released Q3 2022 U.S. Home Sales Report, profit margins on median-priced single-family home and condo sales across the U.S. decreased to 54.6 percent, as home prices declined for the first time in almost three years.

ATTOM’s latest home sales analysis reported the drop-off in typical profit margins, from 57.6 percent in Q2 2022, came as the median national home value went down 3 percent quarterly, to roughly $340,000.

The Q3 2022 report stated that typical investment returns for home sellers remained up from 48.8 percent in Q3 2021 and were still at near-record levels for this century – some 20 points higher than just two years earlier. The report noted the national median home price also stayed near its all-time high – more than double where it stood a decade earlier.

The ATTOM report found that institutional investors nationwide accounted for 6.7 percent, or one of every 15 single-family home purchases in Q3 2022. That figure was up from 6.4 percent in Q2 2022, but still down from 8.4 percent in Q3 2021. Institutional investor purchases are defined as residential property sales to non-lending entities that purchased at least 10 properties in a calendar year.

According to the report, among those states analyzed, those with the largest percentages of sales to institutional investors in Q3 2022 were Arizona (14.3 percent of all sales), Georgia (12.7 percent), Tennessee (10.7 percent), Nevada (10.6 percent) and North Carolina (10.2 percent).

The report noted that states with the smallest levels of sales to institutional investors in Q3 2022 included Hawaii (1.9 percent of all sales), Rhode Island (2.1 percent), Maine (2.1 percent), New Hampshire (2.3 percent) and Louisiana (2.5 percent).

In this post, we dive deeper in the data behind the latest ATTOM home sales report to uncover those top U.S. housing markets that saw the greatest shares of institutional investor sales in Q3 2022. Among those top metros with a population of 200,000 or more and 50 or more home sales in Q3 2022, those with greatest shares of institutional investor sales included: Memphis, TN-MS-AR (19.7 percent); Jacksonville, FL (18.3 percent); Tucson, AZ (18.1 percent); Macon, GA (17.6 percent); Atlanta-Sandy Springs-Roswell, GA (16.8 percent); Clarksville, TN-KY (16.7 percent); Charlotte-Concord-Gastonia, NC-SC (16.4 percent); Lakeland-Winter Haven, FL (15.8 percent); Phoenix-Mesa-Scottsdale, AZ (15.4 percent); and Indianapolis-Carmel-Anderson, IN (15.1 percent).

Top 10 MSAs - Inst Inv Sales Q3 2022

ATTOM’s Q3 2022 home sales report mentioned that homeowners who sold in Q3 2022 had owned their homes an average of 5.98 years. That figure was up from 5.84 years in Q2 2022, but still down from 6.28 years in Q3 2021.

The report also noted that average tenure decreased from Q3 2021 to the same period this year in 81 percent of metro areas with sufficient data.

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