Home Selling Profits Slide Again in 2024
National Median Home Price Climbs to $350,000
by ATTOM Staff
ATTOM released its Year-End 2024 U.S. Home Sales Report, which shows that home sellers made a $122,500 profit on typical sales nationwide in 2024, generating a 53.8% return on investment.
But even as both measures remained near record levels, and home prices kept rising around the country, the profit margin on median-priced sales nationwide decreased from 56.9% from 2023. The drop-off marked the second straight annual decline — a pattern of consecutive downturns that had not happened since the aftermath of the Great Recession in the late 2000s.
While the gross profit on median-priced single-family home and condo sales did inch up about $2,000 from 2023, the typical profit margin stood eight percentage points below a peak hit in 2022.
The downward investment-return trend continued despite the median national home price rising 5% to yet another annual record of $350,000. Margins fell back as the increase in home values failed to keep up with larger price spikes recent sellers had been paying when they originally bought their homes.
“After a weak 2023, the U.S. housing market mostly rebounded nicely in 2024. Prices went back up at a healthy clip and homeowners continued to make some of the best profits on sales in the past 25 years. The renewed shine, however, did not come without a bit of tarnish as margins took another turn for the worse,” said Rob Barber, CEO at ATTOM. “Amid the generally good news, that’s something worth following closely in 2025.”
He noted that “home prices are stretching household budgets more and more, and mortgage rates have been going back up in recent months even as other forces put more upward pressure on prices. So, there are certainly major factors that could propel the market up or settle it back down. Either will have a significant effect on seller returns.”
The price-and-profit picture, while mixed, reflected an ongoing housing market boom that has continued for 13 years in a row. Last year’s scenario emerged as buyers buoyed by rising wages, a strong investment market and mostly receding mortgage interest rates competed for a historically tight supply of homes. Nevertheless, the resulting price gains were not quite enough to push profits upward.
Among 127 metropolitan statistical areas with a population greater than 200,000 and sufficient sales data, sellers in more expensive markets around the U.S. generally reaped the highest returns on investment in 2024. Geographically, the Northeast, South and West regions led the way with 29 of the 30 highest ROIs. They were led by San Jose, CA (105.8% return on investment); Knoxville, TN (94.3%); Ocala, FL (87.1%); Seattle, WA (85.6%) and Scranton, PA (85%).
National Median Home Price Rises Another 5 Percent
After a weak annual gain of just 1.1% in 2023, the U.S. median home price increased another 4.9% in 2024, hitting the latest all-time high of $350,000. The typical 2024 price was almost twice the nationwide median in 2011, a point in time right before the housing market began recovering from the Great Recession.
Amid the tight supply of properties for sale, median values went up last year in 115, or 91%, of the 127 metropolitan statistical areas around the U.S. reviewed for this report. Those with the biggest year-over-year increases were:
» Evansville, IN (median up 13.4%)
» Augusta, GA (up 13.2%)
» Albany, NY (up 12.3%)
» Fort Wayne, IN (up 12.2%)
» Scranton, PA (up 12.1%)
The largest median-price increases in metro areas with a population of at least 1 million in 2024 came in:
» Hartford CT, (up 11.1%)
» New York, NY (up 9.6%)
» Rochester, NY (up 9.5%)
» Detroit, MI (up 9.5%)
» Providence, RI (up 9.4%)
Typical home prices last year reached or tied records in 108 of the metros analyzed (85%), including:
» New York, NY
» Los Angeles, CA
» Chicago, IL
» Houston, TX
» Washington, DC
Metro areas where median prices dropped most in 2024 were:
» Birmingham, AL (down 8.3%)
» Ocala, FL (down 5.9%)
» Fort Myers, FL (down 4.3%)
» Lakeland, FL (down 2.8%)
» Sarasota, FL (down 2.7%)
Profit Margins Decrease in Three-Quarters of Nation
Profit margins on typical home sales went down from 2023 to 2024 in 93 of the 127 metro areas with sufficient data to analyze for investment returns (73%)
The 10 largest decreases in investment returns were all in the South, led by:
» Fayetteville, AR (ROI down from 71.9% in 2023 to 51.3% in 2024)
» Ocala, FL (down from 105.7% to 87.1%)
» Sarasota, FL (down from 80.6% to 64.6%)
» Chattanooga, TN (down from 80.6% to 65.9%)
» Crestview-Fort Walton Beach, FL (down from 60.1% of 45.9%)
The largest ROI losses from 2023 to 2024 in metro areas with a population of at least 1 million were in:
» Birmingham, AL (ROI down from 44.3% to 33.5%)
» Tampa, FL (down from 80% to 69.8%)
» San Antonio, TX (down from 34.4% to 26.4%)
» Austin, TX (down from 46.5% to 39.5%)
» Portland, OR (down from 70% to 63.6%)
The biggest increases in investment returns from 2023 to 2024 came in:
» Syracuse, NY (ROI up from 56% to 69.3%)
» Rochester, NY (up from 61.9% to 72.3%)
» Evansville, IN (up from 34.6% to 44.7%)
» Cleveland, OH (up from 51.6% to 61.2%)
» Akron, OH (up from 50.3% to 59.2%)
Sellers Reaping Gross Profits Above $100,000
Despite the decline in profit margins across much of the country, gross profits on median-priced home sales in 2024 still topped $100,000 in 79, or 62%, of the metro areas with sufficient data to analyze.
The east and west coasts had 18 of the top 20 gross profits last year, led by:
» San Jose, CA ($782,750)
» San Francisco, CA ($500,000)
» San Diego, CA ($372,000)
» Los Angeles, CA ($366,500)
» Seattle, WA ($332,000)
The 20 smallest gross profits in 2024 were in the South and Midwest, reflecting lower home prices in many parts of those regions. The lowest gross profits were in:
» McAllen, TX ($42,212)
» Peoria, IL ($43,500)
» Baton Rouge, LA ($45,180)
» New Orleans, LA ($46,750)
» Birmingham, AL ($50,171)
