Homeowners across the U.S. are still reaping solid returns on property sales, despite a slight slowdown in the housing market. According to ATTOM’s latest report, profit margins for sellers remained strong during the third quarter of 2024, offering reassurance in an otherwise cooling real estate landscape.

Profit Margins Stay High

ATTOM’s report reveals that homeowners earned an impressive 55.6% profit margin on typical single-family homes and condos during the third quarter. Although this marks a minor dip from earlier this year, it remains well above historical averages, highlighting the continued profitability of the housing market.

While the national median home value held steady at around $360,000, the typical profit for home sellers came in just under the record high at $128,700. Though this represents a 0.9% decline compared to the previous quarter, it’s still a 2.7% increase from the same period in 2023, indicating a generally robust market.

Slipping Margins, Stable Profits

Profit margins, or the percentage difference between purchase and resale prices, have been gradually slipping from their 2022 peak of 64.3%. More than half of the metro areas analyzed by ATTOM saw a drop in profit margins from the second to the third quarter, and nearly three-quarters experienced a year-over-year decline.

Despite this, the actual dollar amount sellers are making has remained relatively stable. In Q3, typical raw profits hovered around $128,700—just shy of the $135,000 record set in 2022. Two-thirds of metro areas still reported profit margins exceeding 50%, a significant figure compared to five years ago.

Market Outlook: Steady but Softening

As home prices remain high, sellers are still benefiting from substantial returns, even as margins show signs of gradual decline. ATTOM’s CEO Rob Barber noted that while the housing market has slowed slightly after a robust second quarter, profits remain historically high.

Looking ahead, Barber cautioned that the housing market may continue to soften, particularly as affordability challenges persist for many buyers. However, this slowdown is not an indication that the market boom is coming to an end—at least not yet.

Homeowners and investors should remain attentive to shifting trends, but for now, the real estate market continues to offer strong opportunities for profitable sales.