Despite a slightly cooler housing market, sellers’ profits in the second quarter of 2022 reached 55.5%, a record high.
According to ATTOM’s 2022 U.S. Home Sales Report, sellers’ profits rose from 48.3% in the first quarter, up 7.2% in the second quarter. It marks the highest quarterly increase in at least 14 years. Additionally, it’s an increase of 12.6% year over year and an increase of more than 20% from the second quarter of 2020.
Also reaching new highs in the second quarter were gross profits. The average single-family home and condo home grossed $123,869, up from $103,750 (an increase of 19%) in the first quarter and up from $90,000 year over year (an increase of 38%). Profit margins generally increased across the nation. From the first to second quarter in 2022, profits rose in 89% of metros in the U.S. and were up in 95% of metros year over year.
Despite higher mortgage rates and slightly less demand, home prices are continuing to increase. ATTOM reported that home prices have increased for 10 consecutive quarters, while the median home value rose 8.8% from the first to second quarters of 2022 and 15.3% year over year. Home prices were up in 96% of metro areas both quarterly and yearly.
The Pennsylvania median home sales price was $216,187 in June, up 6.2% year over year, according to a report prepared for the Pennsylvania Association of Realtors®. Median home prices have increased 10% from the first to the second quarters of 2022.
With such high profit margins, sellers are not staying in their homes for long. Sellers in the second quarter owned their homes for 5.87 years on average, up slightly from 5.71 years in the first quarter, but a decrease from 6.31 years from the second quarter of 2021. The first two quarters of 2022 represent the lowest homeownership tenure in a decade.