Home Profits Are At All-Time Highs
It's no secret that the residential real estate market is on fire. Record-low interest rates and a nationwide housing shortage have pushed home prices to new highs. However, up until this point, profitability on the sale of a home wasn't necessarily running alongside it. Competition in the marketplace, particularly among fix-and-flip real estate investors, meant returns were actually falling. But according to ATTOM Data Solutions' latest home profit report, that could all be changing.
According to ATTOM Data's home profit report, which pulls data from Q3 2021 home sales, the profit margin for median home sales was 47.6% -- a new record, even surpassing the profits gained in 2012 and 2013 after the Great Recession.
After the market crashed in 2008 and 2009, investors and homebuyers were able to purchase homes for cheap. This allowed home profit margins to reach new highs in 2012 and 2013, but it seems today's market is even hotter. And this insane home price growth was achieved in far less time than ever before.
Source Fool.com
