Profits for home sellers nationwide continue to hit high points despite the economic distress caused by the worldwide coronavirus pandemic, according to a report from ATTOM Data Solutions.
ATTOM’s third-quarter 2020 U.S. Home Sales Report found the typical third-quarter 2020 home sale in the United States generated a gain of $85,000, up from $75,000 in the second quarter of 2020 and $66,000 in the third quarter of last year.
The typical $85,000 home-sale profit represented a 38.6 percent return on investment compared to the original purchase price, up from 37.5 percent in the second quarter of 2020 and up from 33.7 percent a year ago.
“Home prices and seller profits across the nation continue racking up new highs as the housing market remains relatively immune from the economic havoc caused by the Coronavirus pandemic,” ATTOM Chief Product Officer Todd Teta said in a release. “It’s almost as if the housing market and the overall economy are operating in different worlds.”
“Things remain in flux, given the significant uncertainty about when the pandemic might recede or what impact the recent resurgence could have in different areas of the country,” he said. “But with mortgage rates at rock-bottom levels and declining supplies of homes for sale, conditions remain in place for continued strong prices and returns.”
According to the report, the biggest annual increases in profit margins came in St. Louis, Mo. (up from 22.4 percent to 37.1 percent); Columbus, Ohio (up from 37.1 percent to 51.6 percent); Salem, Ore. (up from 60.6 percent to 73.9 percent); Indianapolis, Ind. (up from 32.7 percent to 46 percent); and Akron, Ohio (up from 20.7 percent to 33.7 percent).
ATTOM said profit margins dropped in14 of the 103 metro areas analyzed, including in Honolulu, Hawaii (down from 43.9 percent to 35.1 percent); San Francisco (down from 71.3 percent to 64.5 percent); Fort Collins, Colo. (down from 49.3 percent to 43.7 percent); Miami (down from 46.8 percent to 41.6 percent) and Las Vegas (down from 47.3 percent to 42.9 percent).
During the third quarter, home prices either set or tied new peaks in 95 percent of the metro areas in the report, including New York, Los Angeles, Chicago, Dallas and Houston.