MReport December 2021

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M REPORT | 55 O R I G I NAT I O N S E R V I C I N G DATA G O V E R N M E N T S E C O N DA R Y M A R K E T THE LATEST DATA Home Sellers Netting Record Profits in Q3 ATTOM reports that as the national medium home sales continue on a torrid record pace, home sellers are increasing their profit margin by as much as 48% in the third quarter. T he latest U.S. Home Sales Report from ATTOM has shown that profit margins on median-priced single- family U.S. homes and condos jumped to 47.6% in Q 3, hitting highs not seen since the close of the Great Recession nearly a decade ago. In Q 3, the typical U.S. single- family home delivered an average profit of $100,178 per seller, as the national median home sales price hit a record of $310,500. According to ATTOM, profit levels were up from $88,800 in Q2 of 2021 and up from $69,000 year over year in Q 3 of 2020. "The third quarter of this year marked another period in a banner year for a housing market boom that's steaming ahead through its 10th year. Prices and seller profits again hit new highs since the market started coming back from the Great Recession in 2012," said Todd Teta, Chief Product Officer at ATTOM. "There have been a couple of small hints of a possible slow- down in recent months, as we head into the normally quiet fall and winter seasons. The pan- demic also remains a constant presence that could tamp things down. But, for now, the market engine seems to have nothing but high-octane gas in the tank." ATTOM found that nationwide, median home prices rose annually in Q 3 in 93% of U.S. metropolitan areas, while profit margins increased in 86% of these metros. CoreLogic's latest Home Price Index (HPI) and HPI Forecast for September 2021 found that contin- ued high demand for the short sup- ply of homes drove prices upward 18% year over year, led by millenni- als who continue to comprise most of the homebuyer demand. Typical profit margins analyzed by ATTOM—the percent change between median purchase and re- sale prices—rose from Q 3 of 2020 to Q 3 of 2021 in 175 (86%) of 204 metro areas nationwide. Margins also increased from Q2 to Q 3 of 2021 in 168 of the 204 metros (82%). The biggest annual Q 3 increas- es in profit margins were found in the following five markets: • Boise City, Idaho: up from 61.4% to 130.3% • Claremont-Lebanon, New Hampshire: up from 41.1% to 93.8% • Augusta, Georgia: up from 19.6% to 56.6% • Raleigh, North Carolina: up from 30.4% to 67% • Bellingham, Washington: up from 69.5% to 105.6% Workers who have the option to work remotely continued to flock to the greater expanses of the western United States, as the largest profit margins on typical home sales were led by: • Boise City, Idaho, bringing a 130.3% return • Bellingham, Washington, bringing a 105.6% return • Claremont-Lebanon, New Hampshire, bringing a 93.8% return • Spokane, Washington, with an 87.7% return • Prescott, Arizona, with an 84.7% return On the other end of the spec- trum, 11 of the 15 smallest profit margins were in the southern United States, with the lowest found in: • Shreveport, Louisiana, bring- ing a 2% return • Gulfport, Mississippi, bringing a 7.4% return • Columbus, Georgia, bringing a 9.9% return • Atlantic City, New Jersey, bringing a 12.4% return • Brownsville, Texas, bringing a 13% return The biggest Q 3 year-over-year increases in median home prices were found in: • Worcester, Massachusetts, up 42.9% • Barnstable, Massachusetts, up 32.5% • Boston, up 28.4% • Boise, Idaho, up 28.3% • Lakeland, Florida, up 27.8%

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