Phoenix home sellers' profits dip, but fare better than many markets

By: Joanne Drilling

The median profit margin for Phoenix home sellers was down 5.8% year-over-year during the first quarter of 2025.

Housing markets have showed signs of shifting and average profits for sellers have been decreasing nationwide. That's true in Phoenix, too, but it's not as bad as in many markets.

That’s according to data from Attom, a property data-analytics company, which found the national median profit margin on home sales fell to 50% in the first quarter of 2025 — down 3.2 percentage points from the fourth quarter of 2024 and down 4.8 points from the first quarter of 2024. It's also down from 64% in 2022.

In the Phoenix metro, the median profit margin in Q1 2025 was 52.4%, which was down 5.8% from the first quarter of 2024, when the profit margin was 58.2%. On the other hand, it's only a slight bump down — 0.1% — from Q4 2024's 52.5% profit margin, indicating that the declines have slowed down in the short term.

According to Attom, the national median profit margin for home sales has been declining almost every summer since 2022, but margins remain well above pre-pandemic levels. Attom determines these profit margins by comparing the difference between the median purchase price and median resale price for homes in an area.

This is the lowest the profit margin has been for the Phoenix metro since the fourth quarter of 2020, when it was 50%. The highest the profit margins reached in the city was in the second quarter of 2022 when it was 87.6%. Other than a couple of small bumps, it has been declining since then.

The Valley has a population of 4,941,206, with 2,030,723 housing units, according to Attom. The metro's raw profit margin in the first quarter of 2025 was $156,500, which was actually up a bit from $154,994 in Q4 2024, but down from $160,000 in Q1 2024. The raw numbers and median profit margins percentage changes can differ because of the number of houses on the market during a given quarter, as well as their prices.

Florida and California see steepest drops

Compared to the fourth quarter of 2024, profit margins were down during the first quarter of 2025 in 99 of the 128 metro areas that had at least 1,000 home sales.

"Sellers may not be enjoying quite the same windfall they were a few years ago, but by historic standards, profits are still strong, both in terms of margins and raw dollar value," said Rob Barber, CEO of Attom. "The first quarter also tends to be the weakest of the year, so don’t be surprised to see profits regain ground during the summer months."

Barber also pointed out that while the dip has affected prices across the nation, some regions in Florida and California saw the largest drops. That, coupled with flattened home sales overall, could be cause for concern in some communities.

Punta Gorda, Florida, fell to 69.2% from 106.3% in a year-over-year analysis. Other Florida metros such as Ocala (down from 99.9% to 66.7%) and Deltona (from 81.6% to 54%) also saw diminished returns. Florida saw tremendous migration during the past five years, which drove up home prices to record levels in some communities. But increasing issues with homeowners insurance, especially with the state plagued by severe weather events, could hamper home sales.

Some cities also have lower profit margins now compared to a year ago. Bakersfield, California, fell from 81.1% to 58.9% and Spartanburg, South Carolina, dropped from 49.4% to 29.6%.

Strongest-performing metro areas

Several Ohio cities saw some of the largest year-over-year gains. Toledo profits grew from 27.8% to 44.7%, Canton returns were up from 43.8% to 53.1%, and Youngstown’s gains went from 64.7% to 70%.

Values still high but owners waiting to sell

National median home sales prices hit a record high of $358,000 in Q3 2024. Since then, that figure has dropped only 0.8% and remains 6% higher than the first quarter of 2024, according to Attom.

Median gains were clustered in the Northeast and Midwest — Syracuse, New York; Toledo and Kansas City, Missouri, all went up 16% or more — while Florida hot spots such as Cape Coral (down 9%), Sarasota (down 6%), Punta Gorda (down 4.5%) and Tampa Bay (down 3.4%) all saw declines.

Meanwhile, people are staying in their homes for longer now, and the average amount of time an owner keeps their home has been increasing since 2006. In the first quarter of 2025, that figure was 8.12 years, six months longer than the first quarter of 2024. The average length of ownership also increased in 84% of the 114 metro areas that had enough data for analysis in a year-over-year comparison.

The share of first-time buyers also hit a record low last year. According to the National Association of Realtors, only 24% of buyers were shopping for their first home.

The shortest homeownership duration was in Provo, Utah (at 6.2 years); Crestview, Florida (6.8 years), and Oklahoma City (6.9 years). The longest homeownership tenures were in Barnstable, Massachusetts (14.8 years); New Haven, Connecticut (13.1 years); and Eureka, California (12.9 years).

Final Thoughts

While Phoenix home sellers have seen a dip in profit margins, the Valley remains resilient compared to many national markets. A strong economy, steady migration, and ongoing new construction continue to support property values in the region. For homeowners, this isn’t a time to panic but a moment to stay informed and strategic.

Out-of-state buyers should view the Phoenix market as one of opportunity rather than volatility. With prices stabilizing and inventory increasing, now may be the ideal window to make a move before demand rebounds. Whether you're selling or buying, understanding where the market stands today helps you plan for tomorrow.

If you're considering making Phoenix your next home, let’s talk about your goals and find the right neighborhood, price point, and timing for your move.