Home values are rising at historic rates in the United States, and Florida scored four metro areas among the nation’s top 40 most profitable. The median home price hit a national all time high of $310,500 in the third quarter of 2021, 16 percent higher than it was the same period the previous year, according to ATTOM Data Solutions, a real estate and property data provider.
Surging home values are partially a product of growing demand, which is fueled in part by low mortgage rates. These conditions have created a seller’s market unlike anything seen in recent memory. Nationwide, the profit margin — the change between purchase and resale prices — on median-priced single-family homes sold in the third quarter was 47.6%, equivalent to a profit of $100,178. In many cities across the country, third quarter profit margins eclipsed the national median by a wide margin.
In the Port St. Lucie metro area, located just north of Palm Beach on Florida’s east coast, the typical home sale in the third quarter of 2021 generated a 69.4 percent profit for the seller — the 15th highest profit margin among U.S. metro areas considered, and first in Florida. In dollar terms, the typical area home sold for $125,000 more than it was purchased for. The typical home in the Port St. Lucie metro area sold for $303,418 in the third quarter of 2021, up 5.1 percent from the median sale price of $288,810 the previous quarter and up 21 percent from the median sale price of $250,000 in the third quarter of 2020.
In the Cape Coral-Fort Myers metro area, just across the state on the opposite coast, the typical home sale in the third quarter of 2021 generated a 62.2 percent profit for the seller — the 32nd highest profit margin among U.S. metro areas considered, and ranking 2nd in Florida. There, the typical area home sold for $117,000 more than it was purchased for.
Third highest in Florida is the Palm Bay-Melbourne-Titusville metro area, also known as Florida’s Space Coast because of its proximity to Cape Canaveral. There, the typical home sale in the third quarter of 2021 generated a 62.4 percent profit for the seller — the 31st highest profit margin among U.S. metro areas considered, taking third place in Florida. In dollar terms, the typical area home sold for $111,000 more than it was purchased for.
Rounding out the list for the Sunshine State is the Tampa-St. Petersburg-Clearwater metro area, where the typical home sale in the third quarter of 2021 generated a 62.1 percent profit for the seller — the 33rd highest profit margin among U.S. metro areas considered. In dollar terms, the typical area home sold for $114,900 more than it was purchased for.
As is the case nationwide the state’s high profit margins have been fueled by a historic surge in home values. The typical home in the Tampa-St. Petersburg-Clearwater metro area sold for $300,000 in the third quarter of 2021, up 5.8% from the median sale price of $283,500 the previous quarter and up 22% from the median sale price of $246,500 in the third quarter of 2020.
All data in this story was provided by ATTOM Data Solutions. All U.S. metro areas with populations of at least 200,000 and at least 1,000 single-family home and condo sales in Q3 2021 were considered. Here’s the national rankings:
|Rank||Metro area||Median homesale profit, Q3 2021 (%)||Median homesale profit, Q3 2021 ($)||Median homesale price, Q3 2021 ($)|
|1||Boise City, ID||130.3||251,989||445,313|
|4||Spokane-Spokane Valley, WA||87.7||171,001||369,000|
|8||Lake Havasu City-Kingman, AZ||72.1||129,907||310,000|
|11||San Jose-Sunnyvale-Santa Clara, CA||71.0||515,000||1,240,000|
|12||Austin-Round Rock, TX||70.9||192,656||465,000|
|14||Grand Rapids-Wyoming, MI||70.0||105,000||255,000|
|15||Port St. Lucie, FL||69.4||125,000||303,418|
|22||Durham-Chapel Hill, NC||65.2||138,500||351,000|
|23||Athens-Clarke County, GA||65.2||104,550||265,000|
|24||Green Bay, WI||65.0||90,600||230,000|
|25||Salt Lake City, UT||64.8||180,874||459,900|
|29||San Francisco-Oakland-Hayward, CA||63.6||388,000||995,000|
|31||Palm Bay-Melbourne-Titusville, FL||62.4||111,000||289,000|
|32||Cape Coral-Fort Myers, FL||62.2||117,000||304,000|
|33||Tampa-St. Petersburg-Clearwater, FL||62.1||114,900||300,000|
|39||Riverside-San Bernardino-Ontario, CA||60.8||185,500||490,000|
The Capitolist compiled this story using data from several other stories by Samuel Stebbins, courtesy of 24/7 Wall Street and The Center Square.