While seller returns remain strong compared to historical norms, the decline signals a potential shift in the market, ATTOM CEO Rob Barber said.
“Caution is needed in looking at the first quarter data and what the patterns mean,” he said in the paper report. “We saw a similar downward pattern from late 2022 to early 2023, and then the market rose.”
Conflicting forces
But even as sellers’ returns fell, they remained higher than during most of the housing boom of the past decade. The typical gross profit of $120,500 on home sales nationwide also remained high.
“Profits and profit margins are still very high historically,” Barber said. “Amid all this, the spring buying season will be a huge barometer of whether the market still has steam in its engine.”
There are various factors that influence the housing market. Persistent inflation, rising mortgage rates and affordability concerns are creating headwinds for buyers. However, historically low housing inventory and a recent stock market rally could boost prices during the spring buying season.