U.S. home sellers in the second quarter saw their profits tick up — an improvement from the quarter before.
The largest gains were seen in Hilo, Hawaii, rose by about 24 percentage points, which was the highest gain in the country, according to a new report from real estate data provider ATTOM. The firm looked at second-quarter home sale data for 156 metropolitan statistical areas with populations of at least 200,000 residents and at least 1,000 sales.
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The median profit margins for sellers fell the most year over year in Las Vegas, where they were down by roughly 14 percentage points.
However, sellers in San Jose, California reaped the highest typical profit margins, of about 101 percent. San Jose also notched the highest typical profit on a home sale by dollar amount — $830,000. Three other California cities — San Francisco (raw profit of $499,000), Los Angeles ($360,000) and San Diego ($360,000) — were next on the list.
Nationwide, home sellers took in a 50 percent profit during the second quarter. That is up about 1 percentage point from the first quarter of the year. However, it is also down by nearly six percentage points year over year, according to ATTOM, continuing a trend since the spring of 2022.
Additionally, about 56 percent of the markets ATTOM looked at had profit margins that were at least equal to the national 50 percent rate. Last quarter, about 60 percent of markets recorded profit margins of over 50 percent.
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The typical raw profit from a sale was $123,000 nationally. That is about 6 percent lower from the second quarter of 2024.
In the second quarter, home prices continued to climb even higher. The median home sale in the U.S. hit $369,000, up 5 percent from the first quarter — even as new listings surge. Median prices climbed in almost 79 percent of the 159 metro areas that ATTOM analyzed year over year, with Hilo, Hawaii, again reporting the highest increase of about 33 percent.