Right now, home sellers are seeing very big profits as real estate prices keep rising. However, during the second quarter of this year, the profit margins were not as robust as one might expect. The median profit for single-family and condo sales in the second quarter of 2021 was $94,500. This is up from the first quarter ($90,000). Although the profit margin is not as robust, it is still significantly higher than it was during the second quarter of 2020 (it was $60,572).
However, the difference between median purchase and resale prices declined during the second quarter from 48.4% in the first quarter, to 44.9% in the second. Despite of this, real estate prices continue to rise. In fact, the national median home price hit another record during this quarter. It reached $305,000, which marked an 11% increase from the first quarter of 2021, and 22% increase from the second quarter of 2020.
The Covid-19 pandemic has dramatically changed the way homes are sold, marketed, and listed. People are looking for very specific things, and therefore there is a lot of competition. Homeowners who sold their homes in the second quarter of this year owned their properties for an average of 6.3 years. This is the shortest amount of time between purchases and resale since 2013.
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