Seller Profits Broke 50% In 2022 Despite Market Downturn

Home seller return on investment rose to 51% at the end of 2022 despite slowing sales, new data from ATTOM shows.

Sellers nationwide earned $112,000 on the typical sale in 2022, up 21% from 2021 and 78% from before the pandemic.

Both raw profits and ROI have now improved across the country for 11 consecutive years.

Ninety-eight percent of markets with enough data to analyze saw profits increase from 2021 to 2022. The latest number is the highest profit level seen by home sellers since at least 2008.

Sellers in Southern and Western markets saw the highest ROI, led by Hilo, HI (100% ROI); Lake Havasu City-Kingman, AZ (88.4%); Spokane, WA (86.2%); Fort Myers, FL (85.4%) and Port St. Lucie, FL (84.8%).

But profits will likely fall through 2023 as home prices moderate and buyers gain power in the market.

“It seems pretty likely that home seller profits peaked for this cycle in 2022,” said Rick Sharga, executive vice president of market intelligence at ATTOM. 

“Median prices have declined on a monthly basis since mortgage rates doubled between January and October and are likely to decline further in many markets across the country in 2023, reducing profitability for home sellers.”

The median home price rose 10% in 2022 to $330,000, another record YOY, but increased at a slower pace than in 2021.

“Homebuying activity remains tepid, but if rates continue to fall and home prices cool further, we expect to see potential buyers come back into the market. Many have been waiting for affordability challenges to subside,” MBA Vice President and Deputy Chief Economist Joel Kan recently said.

Redfin data shows that buyers are already coming off the sidelines, with more people contacting the company to start the homebuying process. Some of Redfin’s agents report that competition for individual homes is back in markets like Seattle, central Florida, and Richmond, VA.

“I’ve seen more homes go under contract this month than in the entire fourth quarter. Listings that were stagnant in November and December are suddenly getting one to two offers,” San Jose, CA Redfin agent Angela Langone said.

Follow Us On Twitter:

Read More Articles:

They Used To Be A Pizza Hut: Finding New Purposes For Commercial Spaces

The Hangover: Staffing Cuts And Enhanced Efficiencies Are On The Docket For Lenders In 2023

Americans Looking To Move To New Metros At “Unprecedented Rate”