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ATTOM Data Solutions reports that home sellers gained an average of $75,971 on the typical sale in Q2 2020, which is up from Q1’s $66,500 and Q2 2019’s $65,250.
The sellers’ profit represented a 36.3% return on investment when compared to the purchase price. That is up from Q1 2020’s 33.7%—another post-recession high.
ATTOM also reported that home prices rose by at least 5% in more than half the markets analyzed.
“The housing market across the United States pulled something of a high-wire act in the second quarter, surging forward despite the encroaching economic headwinds resulting from the Coronavirus pandemic. Profit margins hit new records as prices kept climbing, with few indications that the impact of the virus would topple the market,” said Todd Teta, Chief Product Officer at ATTOM Data Solutions. “No doubt, a lot of the ongoing prosperity resulted from gains seen before the pandemic started racing through the country in February and March. Indeed, there have been recent signs of prices flattening out or dropping across significant parts of the country, and the economic toll from the virus continues to be a major issue. But the second-quarter results showed continuing strength in most parts of the nation.”
Profit margins rose in Q2 2020 from the year prior in 81 of the 104 cities studied. The largest annual increase came in Spokane, Washington (61.2% to 76%); Columbus, Ohio (34% to 47%); St Louis (19.9% to 31.4%); Chattanooga, Tennessee (31.9% to 43.4%), and Indianapolis (30.5% to 41.9%).
For cities with a population of at least 1 million, Rochester, New York’s, increase from 21.4% to 34.2% was the largest in the nation.
Profit margins fell in 23 of the 104 metros studied (22%). The steepest drop was in Pittsburgh, which saw margins fall from 28.6% to 20.9%.
The biggest declines in cities with a population of more than 1 million were in Denver, reported margins fell to 44.4% from 49.1%.
