Most people buy houses to live in them. Some people buy them to make short-term profits. The profit on a median-priced home nationwide, which cost $350,000 in the second quarter, was 47.4%. People who take the risk of flipping homes did very well in the second quarter of 2023. (These are each state’s worst county to live in.)
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“Just when it looked like the housing market was flattening out, prices spiked again, which pushed seller profits back up to nearly their highest level in the past decade,” said Rob Barber, CEO of property data provider ATTOM. This is mostly because there is little inventory, and even though mortgages are near 7%. Home flippers often pay cash, however.

The profit yield of a home purchased and one sold rose in 107 of the 156 markets compared to the first quarter.

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The largest raw profit margins by city were in San Jose, San Francisco and San Diego, with profits of $600,00, $416,000 and $325,500, respectively, followed by Seattle at $285,000 and Naples, Florida, at $265,905. The west coast cities on the list are among the markets in the United States with the highest median prices.

On the other hand, the houses with the lowest price increases in the second quarter were in Shreveport, Louisiana, at $14,000; Beaumont, Texas, at $24,943; Rockford, Illinois, at $38,140; McAllen, Texas, at $41,407; and Toledo, Ohio, at $43,000. Once again, no surprise. These are among the cities with the lowest home prices.

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