According to ATTOM's Year-End 2022 U.S. Home Resale Report, 407,417 single-family homes and condominiums were resold in the U.S. in 2022. This figure represents a 14% increase from 357,666 in 2021 and a 58% increase from 2020, making it the highest figure since at least 2005.
The number of homes resold by investors last year accounted for 8.4% of all home sales, the highest figure since at least 2005 and up from 5.9% in 2021 and 5.8% in 2020, according to ATTOM's latest home resale analysis.
The report noted that despite a surge in buy-now-renovate-resale returns by investors, gross profit margins from home flips fell sharply for the second time in two years in 2022, dropping to their lowest level since 2008.
Homes resold in 2022 typically generated a gross profit (the difference between the median sales price and the median amount originally paid by an investor) of $67,900 nationwide, according to ATTOM's year-end resale report.
The report noted that this figure is down 3 percent from $70,000 in 2021, and represents just a 26.9 percent return on investment compared to the original acquisition price. The latest national ROI (before taking into account mortgage interest, property taxes, renovation costs and other costs of ownership) is down from 32.6 percent in 2021 and 41.9 percent in 2020, according to the report.
The report also found that investors' returns fell for the fifth time in the past six years, as the average increase in value of resold homes was 12 percent compared to the 17 percent increase in the average price paid to purchase the property.
According to ATTOM's Year-End Property Resale Report, among the 56 U.S. metropolitan areas with populations of 1 million or more, the cities with the highest gross profits from property resales in 2022 were San Jose, CA ($242,625), San Francisco, CA ($163,000), Washington, DC ($146,728), New York, NY ($141,332) and Seattle, WA ($137,664).
In this article, we take a deeper look at data from ATTOM's latest U.S. Home Resale Report to reveal the top U.S. counties with the highest home resale profits in 2022. These counties include San Mateo County, CA ($350,000 total resale profits), Frederick County, MD ($343,362), Loudoun County, TN ($325,900), Marin County, CA ($300,000), Sussex County, DE ($298,108), Monroe County, FL ($260,000), Kauai County, HI ($254,876), Santa Clara County, CA ($252,500), Washington County, PA ($252,472), and Fauquier County, VA ($250,000).
Of the 955 counties with at least 50 home resales in 2022, 219 counties had resales account for at least 10% of all home sales last year, according to ATTOM's year-end 2022 home resale analysis.
According to the report, the top five counties are all located in Georgia: Douglas County, Georgia (a suburb of Atlanta) (19.5%), Lumpkin County, Georgia (north of Atlanta) (19.2%), Clayton County, Georgia (a suburb of Atlanta) (18.6%), Paulding County, Georgia (a suburb of Marietta) (18.5%) and Rockdale County, Georgia (a suburb of Atlanta) (18%).
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About the Author: Kristin Stricker Kristin Stricker is the Senior Marketing Manager at ATTOM Data Solutions and serves as the primary media liaison for the premium property data provider. She is responsible for driving the success of ATTOM Data’s products, services and brand promise in the marketplace, and is committed to identifying opportunities and executing effective strategies to drive results.
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