Home Profits Fall Slightly but Remain Strong in 2025 Market

Home profits averaged 50% in Q2 2025 despite a yearly dip, with sellers netting $123K on typical sales, per ATTOM data.

July 29, 2025

Home sellers averaged a 50% profit in Q2 2025, down from 55.6% in Q2 2024 but up slightly from Q1 2025’s 48.9% return.
Median raw profit dropped 5.6% year-over-year to $123,000, with two-thirds of major US metros seeing declines.
Median home sale prices hit a record $369,000, despite the softening profit margins, driven by continued market tightness.
Longer homeownership tenure and fewer cash/institutional buyers are shifting the market dynamics heading into the second half of 2025.

Key Takeaways

Margins Down, But Still Historically Strong

GlobeSt reports that the average US homeowner selling a single-family home or condo in Q2 2025 netted a 50% profit, according to new data from ATTOM. That’s down from 55.6% during the same period last year, but still well above pre-pandemic averages of 30%. It’s also a modest rebound from Q1 2025’s 48.9%, temporarily halting a trend of declining margins since early 2022.

In raw dollars, the typical home sale generated a $123,000 profit—down 5.6% from $127,990 in Q2 2024.

Market Forces at Play

Prices remain elevated even as margins shrink. The median US home sale price rose to a record $369,000 in Q2, up $19,000 from Q1. The increase came amid longer hold times: the average seller had owned their home for 8.18 years, the longest tenure in 25 years.

Despite strong prices, fewer homes are selling with institutional backing or all-cash offers. All-cash sales fell to 38.9%, down from 42.1% last quarter, and institutional investors made up just 5.7% of buyers—down from 6.5% a year ago.

Where Profits Are Rising (And Falling)

Profit margins improved in 77 of the 156 metros studied, but the majority (123 metros) still saw year-over-year declines. Some of the biggest increases were seen in:

Hilo, HI
Kalamazoo and Flint, MI
Trenton, NJ
Bridgeport, CT

The steepest drops occurred in:

Ocala, Sarasota, Punta Gorda, and Naples, FL
Knoxville, TN

Among major cities (pop. 1M+), Honolulu, St. Louis, Hartford, Chicago, and Buffalo saw the greatest profit margin improvements, while Las Vegas, Jacksonville, Tampa, San Francisco, and Columbus, OH posted the steepest drops.

What’s Next

While average profit margins have declined from their pandemic-era highs, ATTOM CEO Rob Barber notes they remain “at pretty good levels” historically. However, with homeownership tenure hitting record highs and investor activity slowing, buyer competition may ease slightly in coming quarters.

Still, with prices on the rise in most markets and inventory constrained, sellers are likely to continue realizing strong returns—though perhaps not as strong as those seen in recent years.