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Selling homes is starting to get less profitable, study finds

Selling your home now may not yield as much profit as you expected.

The typical person who sold a condo or single-family home in the first three months of 2023 made a net profit of $98,350, according to analysis by real estate data provider ATTOM. foundThis is down from $104,000 in the last three months of 2022 and $124,000 around the middle of last year.

Home prices across the country have flattened or fallen in recent months, according to ATTOM, resulting in less income from selling homes.

“Nine months of mixed price declines across the country have cut nearly a quarter of the profit margins sellers enjoyed in early 2022,” ATTOM CEO Rob Barber said in a statement. lost,” he said. “This is an amazing reversal of what we’ve seen in 10 years.”

Home sales profits are shrinking at a time when the spring homebuying season is in full swing and usually expected to rise. However, many homeowners are choosing not to sell at a time when mortgage costs have increased and buying a new location has become much more expensive as property prices have risen in the last year.

Zillow economist Orphe Divounguy said: “Sellers are silent. There is no reason to trade a low mortgage for a high interest rate.”

In its analysis, ATTOM examined the median purchase and resale prices of homes sold in 137 of the country’s largest metropolitan areas. Between the last month of 2022 and the first quarter of 2023, 93 of these metropolitan areas saw margin declines, according to ATTOM research.

Profit margins plunged most in Prescott, Arizona. Stockton, California. Louisville, Kentucky. Buffalo, New York and Akron, Ohio. ATTOM data shows. Cities such as Lake Havasu City, Arizona saw higher profit margins. Atlantic City and Trenton, New Jersey. Reading and Scranton, Pennsylvania.

“If home prices have risen 50% to 60% in the last two years and have only fallen about 8% since the market started to slow, you are still far ahead,” he said.

Selling your home this year may not give you the same return as in 2022, but it’s still a better option than ever. The seller typically made a profit of $43,500 in the first quarter of 2019, just before the pandemic started. Ten years ago, sellers typically lost about $19,100 when selling their homes, according to ATTOM data.

Of course, selling a home is more likely to be more profitable than reselling another property. Another of his ATTOM surveys, released last month, found that investors resold his more than 407,000 single-family homes and condos last year, $67,900 average windfall profitWhile this may seem like a sizeable gain, it’s the lowest since the housing crash that triggered the 2008 financial crisis.

—Aimee Picchi contributed to this report.

Summarize this content to 100 words

Selling your home now may not yield as much profit as you expected.The typical person who sold a condo or single-family home in the first three months of 2023 made a net profit of $98,350, according to analysis by real estate data provider ATTOM. foundThis is down from $104,000 in the last three months of 2022 and $124,000 around the middle of last year.Home prices across the country have flattened or fallen in recent months, according to ATTOM, resulting in less income from selling homes.

“Nine months of mixed price declines across the country have cut nearly a quarter of the profit margins sellers enjoyed in early 2022,” ATTOM CEO Rob Barber said in a statement. lost,” he said. “This is an amazing reversal of what we’ve seen in 10 years.” Home sales profits are shrinking at a time when the spring homebuying season is in full swing and usually expected to rise. However, many homeowners are choosing not to sell at a time when mortgage costs have increased and buying a new location has become much more expensive as property prices have risen in the last year.

Zillow economist Orphe Divounguy said: “Sellers are silent. There is no reason to trade a low mortgage for a high interest rate.”In its analysis, ATTOM examined the median purchase and resale prices of homes sold in 137 of the country’s largest metropolitan areas. Between the last month of 2022 and the first quarter of 2023, 93 of these metropolitan areas saw margin declines, according to ATTOM research. Profit margins plunged most in Prescott, Arizona. Stockton, California. Louisville, Kentucky. Buffalo, New York and Akron, Ohio. ATTOM data shows. Cities such as Lake Havasu City, Arizona saw higher profit margins. Atlantic City and Trenton, New Jersey. Reading and Scranton, Pennsylvania.“If home prices have risen 50% to 60% in the last two years and have only fallen about 8% since the market started to slow, you are still far ahead,” he said.

Selling your home this year may not give you the same return as in 2022, but it’s still a better option than ever. The seller typically made a profit of $43,500 in the first quarter of 2019, just before the pandemic started. Ten years ago, sellers typically lost about $19,100 when selling their homes, according to ATTOM data.Of course, selling a home is more likely to be more profitable than reselling another property. Another of his ATTOM surveys, released last month, found that investors resold his more than 407,000 single-family homes and condos last year, $67,900 average windfall profitWhile this may seem like a sizeable gain, it’s the lowest since the housing crash that triggered the 2008 financial crisis.—Aimee Picchi contributed to this report.

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Christopher J. Brooks

Christopher J. Brooks is a reporter for CBS Moneywatch, covering business, consumer and financial topics ranging from economic inequality and housing to bankruptcies and the sports business.

https://www.cbsnews.com/news/average-profit-selling-home-2023-data/ Selling homes is starting to get less profitable, study finds

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