Home-Sale Profits Continue to Drop as Prices Stagnate

Although home sellers saw profits grow slightly in Q2 2025, profit margins still fell on a year-over-year basis.
July 25, 2025
2 min read
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Homebuyer shakes hands with real estate agent after closing on a home
Profit margins for home sellers are lower than they were a year ago. Even so, rising home prices over the past few years have kept profits relatively high.

ATTOM, a provider of real estate data and analytics, recently released its Q2 2025 U.S. Home Sales Report, which shows that homeowners earned an average profit of 50% on the sale of single-family homes and condos. While Q2 2025 marks a slight increase from the 48.9% profit margin recorded in Q1 2025, it's down from the 55.6% profit margin seen in the same quarter last year.

Profit margins peaked at 64.3% in spring 2022, and have since steadily declined due to minimal home-price growth. Still, the recent quarter-over-quarter increase suggests that home prices, which remain historically high, may continue to rise. In Q2 2025, the national median home sale price reached $369,000, a 5.4% increase from the previous quarter and a 3.1% increase compared with the same period one year ago.

We saw historically high home prices last quarter but even so, we didn’t see a big jump in seller profits. That’s a measure of the fact that home prices have been very high for a number of years now. While profit margins aren’t going up significantly, they’re still sitting at pretty good levels.

- Rob Barber, CEO of ATTOM

How much profit did sellers make in Q2 2025?

Home seller profits are still high, but they have come down over the past year. In Q2 2025, the typical home sale netted $123,000 in raw profit, which was down by 5.6% compared with the $127,990 median profit averaged in Q2 2024.

In fact, profit margins were down annually in most metro areas

Out of the largest 156 metro areas analyzed by ATTOM, the profit margin for a typical home sale rose in 77, or 49.4%, of them. Year-over-year, however, the median profit margin was down in 123, or abotu 78.8%, of the 156 metro areas.

The cities that experienced the biggest annual decrease in median profit margins in Q2 2025 were in Ocala, Fla., where margins fell from 97.6% to 61.8%; Knoxville, Tenn., where margins fell from 105.8% to 81%; and Sarasota, Fla., where they fell from 70% to 47.8%.

Meanwhile, the largest annual increases in median profit margins were in Hilo, Hawaii, where profit margins grew from 41.4% to 65.7%; Kalamazoo, Mich., where they increased from 59% to 69.3%; and Flint, Mich., where profits increased from 60.7% to 69.7%.

The trend in declining profits has been seen over the course of the past year

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