Home sellers’ profits slide as rates bite and cash buyers retreat

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North Port‑Sarasota fell from 57.9% to 35.5%. In Arizona, Prescott’s margin eased from 69.4% to 47.1%.

At the same time, Flint, MI saw margins climb from 65.5% to 81.8%, Evansville, IN from 40.9% to 53.5%, Lansing, MI from 48% to 57.8%, Canton, OH from 55.5% to 60.2% and Syracuse, NY from 67.6% to 72%.

In major markets, margins stayed widest in San Jose, Hartford, Providence, Rochester and Buffalo, all above 70%. They were thinnest in New Orleans, San Antonio, Houston, Dallas and Austin, where returns ranged from 14% to 27.4%, underscoring the pressure in large Texas metros.

The broader deal mix also shifted. Lender‑owned sales inched up to 1.6% of transactions nationwide, while all‑cash deals fell year‑over‑year to 41.7% of sales, with the highest cash shares in parts of Hawaii, Georgia, Florida and New York.

Institutional investors bought 6.6% of homes, down from a year earlier, and FHA‑backed purchases slid to 7.4%, the lowest in nearly four years.

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