U.S. Housing Market in Q3 2023: Profits, Prices, and Predictions
The housing market's resilience in the face of constant change is something to behold. As we moved through Q3 2023, homeowners and prospective buyers found themselves navigating yet another dynamic landscape. With the release of ATTOM's U.S. Home Sales Report for Q3 2023, we get a comprehensive look into the latest shifts and trends. Here are the key insights you should be aware of:
Rising Profits and Prices
Profits have seen a promising uptick. In Q3, typical profit margins on home sales rose to 59%, up from 56.6% in the preceding quarter. This marks the second consecutive quarterly increase. Correspondingly, the median nationwide home price also saw a hike, with a 2% rise, setting a new record at $350,000.
The gross profits grew by 5% for the typical single-family home and condo sale across the nation, amounting to $129,900. However, this is still shy of the 62% level recorded in Q3 of the previous year.
Metro Area Highlights
Profit margins increased in 85 of the 155 metro areas (55%).
70 of these metro areas (45%) experienced a quarterly decrease in typical profit margins.
Median-priced home sales profits surged from $123,716 to $129,900, a commendable 5% increase.
110 metro areas (71%) reported an increase in median single-family home and condo prices from Q2 to Q3.
86 of the 155 metro areas (55%) either matched or set new price records in Q3 2023.
Homeownership Tenure
The average homeownership tenure has seen a significant rise. Sellers in Q3 2023 had owned their homes for an average of 7.86 years, a number second only to the highest point since 2000. This figure has risen consistently, up from 7.6 years in Q2 2023 and 7.21 years in Q3 2022. Most notably, the top 40 longest average tenures were predominantly found in the Northeast or West regions of the U.S.
Notable Market Factors
Foreclosure-related sales constituted only 1.4% of all sales, a slight decrease from 1.5% in the last quarter.
Institutional investors were involved in 5.9% of purchases, dropping from 6.2% in the previous quarter.
FHA loans were utilized in 8.8% of all purchases.
Words from the Experts
Rob Barber, ATTOM's CEO, commented on the market's current standing, emphasizing the uncertainty moving forward with rising mortgage rates, potential recession threats, and home affordability concerns. However, the market's third-quarter performance demonstrates its inherent robustness against such challenges.
Additionally, Barber highlighted the increment in cash sales over the past year, a trend that's expected to continue with rising mortgage rates, currently nearing an average of 8% for a 30-year loan.
In Conclusion
The housing market in Q3 2023 presented a mixed bag of trends, from rising profit margins and prices to shifts in homeownership tenure. As we brace ourselves for the annual Fall slowdown and potential market challenges, it's essential to stay informed and make well-informed decisions, whether you're a seller, buyer, or investor. The latest insights provide valuable guidance for all market participants, positioning them for continued success.
Kevin Farfan LLC GRI, PSA, RENE, MRP, C-RETS
Coldwell Banker Realty
213 W. Bloomingdale Ave.
Brandon, FL. 33511
Cell 813-784-7139
website: www.kevinfarfanllc.com
"I Sell Lifestyles!"