ATTOM Data Solutions’ newly released Q2 2020 U.S. Home Sales Report revealed that nationwide home sellers realized a gain of $75,971 on the typical sale, marking another peak level of raw profits in the U.S. since the housing market began recovering from the Great Recession in 2012. The report noted that latest figure, based on median purchase and resale prices, is up from $66,500 in Q1 2020 and from $65,250 in Q2 2019.
According to ATTOM’s most recent home sales analysis, the typical $75,971 home-sale profit represented a 36.3 percent return on investment compared to the original purchase price. That percentage is up from 34.5 percent in Q1 2020 and from 33.7 percent in Q2 2019, to another post-Recession high.
The analysis reported that the latest increases in profits and profit margins came as median home prices increased, year over year, in almost every market around the country with enough data to analyze, rising by at least 5 percent in more than half those markets. The report noted that prices and returns rose despite the economic damage caused by the worldwide Coronavirus pandemic.
ATTOM’s Q2 2020 home sales report cited the typical profit margins – the percent change between median purchase and resale prices – rose from Q2 2019 to Q2 2020 in 78 percent or 81 of the 104 U.S. metro areas with at least 1,000 single-family home and condo sales in Q2 2020.
Also according to the report, the biggest annual increases in profit margins came in Spokane, WA (margin up from 61.2 percent to 76 percent); Columbus, OH (up from 34 percent to 47 percent); St. Louis, MO (up from 19.9 percent to 31.4 percent); Chattanooga, TN (up from 31.9 percent to 43.4 percent) and Indianapolis, IN (up from 30.5 percent to 41.9 percent).