Home sellers’ profits have fallen in most metro areas, despite record sales prices
Sellers typically earned $123,100 per sale, up 1.9% from the previous quarter, but 3.5% below the Q3 2024 figure.
“Profit margins remained stable and high during the traditionally busier summer sales season,” said Rob Barber, CEO of ATTOM. “While persistently rising prices could have driven away buyers and reduced demand, the recent decline in mortgage rates may help keep more people in the market.”
The national average sales price rose 1.2% from the second quarter and 3.4% year over year to $370,000, marking a second straight record.
Profits are falling in most metro areas
Profit margins fell quarter-over-quarter in nearly 59% of the 157 metropolitan areas analyzed – and fell year over year in more than 84% of them, according to the report.
Florida markets saw some of the steepest declines – including Ocala, down 103.9% to 55.1%; Punta Gorda, down from 88.3% to 58%; and North Port-Sarasota, dropped from 61.1% to 38.8%.
Some urban areas saw improvement. St. George, Utah, increased from 26.3% to 37.2%; Gulfport, Mississippi, increased from 26.2% to 35.7%; and Lexington, Kentucky, increased from 42.9% to 48.6%.
Among metro areas with more than 1 million residents, the sharpest annual decline occurred in Tampa (from 70.7% to 54.3%); Seattle (decreased from 93.6% to 80.2%); and Boston (decreased from 81.8% to 70%).
Divergent market results in Texas, California
Just over half of all metro areas posted profit margins above 50% in the third quarter.
The highest gains among major metros were in San Jose (94.3%); Seattle (80.2%); and Buffalo, New York (80%).
Texas cities had some of the lowest returns. New Orleans had the lowest win margin at 19.6%, followed by San Antonio (22.8%), Houston (30%), Austin (31.8%) and Dallas (33.5%).
The typical U.S. home sale netted $123,100 in profit, but wide disparities between markets remained.
Major California metros posted the largest raw gains, with San Jose leading with an average gain of $740,500, followed by San Francisco ($450,000) and San Diego ($350,000).
The smallest raw gains were in New Orleans ($41,000), San Antonio ($55,895) and Oklahoma City ($63,000).
The Midwest is leading in price growth
Average sales prices increased annually in 77% of urban areas.
Birmingham, Alabama, led with a 23.5% increase, followed by Detroit (+17.4%); Dayton, Ohio (+14.8%); Flint, Michigan (+12.9%); and Indianapolis (+12.8%).
Cape Coral, Florida (-10.7%); Lake Havasu, Arizona (down 8.6%); and Austin (-8.2%) recorded the largest year-over-year price declines.
The average seller owned their home for 8.39 years before selling it – the longest period in at least 25 years.
Barnstable, Massachusetts, topped the list with an average of 14.4 years, followed by San Francisco (13.1 years) and Bridgeport, Connecticut (12.8 years).
The shortest tenures were in Provo, Utah (6.9 years) and Oklahoma City (7.1 years).
Lender ownership and cash sales stable
Lender-owned homes represented just 1.2% of all U.S. sales in the third quarter of 2025, down slightly from the previous quarter.
Beaumont, Texas, had the highest share at 4.1%, while Seattle had one of the lowest rates at 0.5%.
All-cash transactions accounted for 38.9% of all sales, compared to 37.6% a year ago. The highest rates were in Hilo, Hawaii (69.9%), and Claremont, New Hampshire (69.7%).
Institutional and FHA purchases
Institutional investors bought 6.4% of homes sold, compared to 7% in the previous quarter.
Texas and Missouri led the way, with 8.8% of total sales going to institutional buyers.
Federal Housing Administration (FHA) loans were used for 8.3% of all purchases, with California metros – including Merced at 24.4% and Bakersfield at 23.4% – leading the way in this use.
