KEY HIGHLIGHTS

  • According to ATTOM Data Solutions, sellers realized gain of +36.3% in Q2 2020
  • Gain of $75,971 on typical sale
  • Peak in raw profits since Great Recession recovery in 2012

ATTOM Data Solutions had good news for home sellers in Q2 2020. In its latest Q2 2020 US Home Sales Report, home sellers across the country saw a gain of $75,971, or +36.3%, on a typical sale. This ROI of 36.3% in Q2 increased from 34.5% in Q1 2020 and 33.7% from one year ago.

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This latest increase in profit and profit margins was the result of median home prices increasing, y/y, in nearly every market around the country. In more than half of these markets, the median price increase was slightly more than +5%.

According to Todd Teta, chief product officer with ATTOM, “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.”

The biggest annual increases in profit margins came in Spokane WA (61.2% to 76%); Columbus OH (34% to 47%); St. Louis MO (19.9% to 31.4%); Chattanooga TN (31.9% to 43.4%) and Indianapolis IN (38.6% to 48.6%)

Profit margins decreased in 22% of the metro areas analyzed by ATTOM. Areas with populations of at least 1M that saw the biggest profit margin decreases included Pittsburg PA (28.6% to 20.9%); Modesto CA (58.7% to 51.1%); Honolulu HI (43.8% to 36.2%); Greeley CO (41.5% to 35.4%) and Naples FL (22.1% to 16.7%).   Other metro areas with at least 1M people that saw less decrease in profit margins included Denver CO, Grand Rapids MI, San Francisco CA and Boston

On an annual basis, median home prices from Q2 2019 to Q2 2020 increased an average of 6%. Detroit MI, Boise ID, Spokane WA, New Haven CT and Birmingham AL saw quarterly median home prices rise between 27.2% to 13.3%.

Cash sales hit its lowest level in 13 years during Q2 2020.  Metro areas most severely hurt by cash crunches included Seattle WA, Bellingham WA, Vallejo CA, Colorado Springs CO and Portland OR. Distressed home sales also hit a 14 year low though metro areas with the largest portion of distressed sales to total sales were Connecticut, Rhode Island, New Jersey, Maryland and Illinois.

Institutional investors nationwide accounted for only 1.4% of all single-family and condominium sales in Q2 2020. Despite this 1.4% representing a 20-year low, institutional investors were most active in Arkansas, Georgia, Alabama, Oklahoma and North Carolina.

 

 

Thanks to ATTOM Data Solutions.

Also read: People Ditching Big Cities for Smaller Suburbs & More Space, Top Metros with Wildfire Risk, Q1 2020 Home Sales Report