A housing market with too few homes for sale can be frustrating for home buyers. For home sellers, though, it's an opportunity. Evidence of this can be found in ATTOM Data Solutions most recent U.S. Home Sales report. The report covers the first quarter of 2022 and shows the typical single-family home sold at the beginning of the year generated a gross profit of $103,000. That's up from $75,000 one year ago at the same time.
Rick Sharga, ATTOM's executive vice president of market intelligence, says though rapidly rising prices have pushed profits higher, they're likely to slow down soon. “Home prices simply can't continue to go up as rapidly as they have for the past few years ...” Sharga said. “Ultimately, as affordability worsens, price appreciation should slow down, and we may even see modest price corrections in some markets.”
It may have already started. ATTOM's report found home seller profits actually fell from the previous quarter. In fact, during the fourth quarter of 2021, the typical home sale generated $107,000.