ATTOM data showed returns shrinking but still well above pre‑COVID norms
Home sellers across the US saw their margins compress again in early 2026 as higher borrowing costs and softer price growth continued to cool a once‑red‑hot market, according to ATTOM’s latest US Home Sales Report.
The data provider reported that the typical single‑family home or condo sale in the first quarter generated a 44.1% return on investment, down from 47.2% in the previous quarter and 50.2% a year earlier.
That marked the first time in five years that the national profit rate dipped below 45% and the lowest margin since early 2021, even though returns stayed well above pre‑pandemic levels.
“The first quarter is typically a slower sales season and that was compounded this year by rising mortgage rates,” Rob Barber, ATTOM CEO, said.
“After the record high home prices we saw last summer, prices appear to be leveling out.”
He added that “the profit margins sellers enjoyed over the last few years, which were consistently over 50%, were unusual,” but that even after the latest pullback, margins remain “well above the 30% return on investment sellers were seeing before the pandemic.”
Median prices held flat quarter‑over‑quarter at $360,000, up 3% year‑over‑year. The typical raw profit slipped to $110,100, down 5% from late 2025 and 6% from a year earlier.
In Florida, Ocala’s typical margin dropped from 119.4% to 58.1%, while Punta Gorda slid from 78.9% to 54.3% and Lakeland from 62.2% to 38%.
North Port‑Sarasota fell from 57.9% to 35.5%. In Arizona, Prescott’s margin eased from 69.4% to 47.1%.
At the same time, Flint, MI saw margins climb from 65.5% to 81.8%, Evansville, IN from 40.9% to 53.5%, Lansing, MI from 48% to 57.8%, Canton, OH from 55.5% to 60.2% and Syracuse, NY from 67.6% to 72%.
In major markets, margins stayed widest in San Jose, Hartford, Providence, Rochester and Buffalo, all above 70%. They were thinnest in New Orleans, San Antonio, Houston, Dallas and Austin, where returns ranged from 14% to 27.4%, underscoring the pressure in large Texas metros.
The broader deal mix also shifted. Lender‑owned sales inched up to 1.6% of transactions nationwide, while all‑cash deals fell year‑over‑year to 41.7% of sales, with the highest cash shares in parts of Hawaii, Georgia, Florida and New York.
Institutional investors bought 6.6% of homes, down from a year earlier, and FHA‑backed purchases slid to 7.4%, the lowest in nearly four years.
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