California home-sellers’ paydays and profit margins declined in the third quarter, as home sales and prices remained sluggish.
Now, home-sellers in the state continued to enjoy some of the largest gains in the U.S, but the money received dropped compared to a year ago, according to ATTOM Data.
The average home-seller had a $296,000 payday – based on the purchase price compared to the sale price – and a 67.4% profit-margin during the third quarter, down from $312,000 and 74.6%. (Payday and profit-margins do not include the cost of home-improvement projects over the years, closing costs related to the sale or real estate commissions.)
BEST PAYDAYS STILL IN CALIFORNIA
So, it’s far from the sky is falling, the four largest profits in the nation were in California – San Jose at $740,500, San Francisco at $450,000, San Diego at $350,000 and Los Angeles at $349,500.
But there are some clouds, with all 10 metro regions – from San Diego to the Wine Country – enduring a drop in profit margins, including double-digit slides in Sacramento (11.1%) and Fresno 10.7%.
Silicon Valley, buoyed by Ai investments, had the smallest decline at 2.9% compared to a year ago.
BUY, HOLD AND STAY
California home-sellers are faring better than many others nationwide; all 10 metros reported paydays and profit-margins that exceeded the national average of $123,100 and 49.9% (see table, below), according to ATTOM Data. Last year, the percentage gain was 55.4%.
“Profit margins remained steady and high throughout the traditionally busier summer selling season,” said ATTOM CEO Rob Barber. “While continuously rising prices could have chased away buyers and slackened demand, the recent dip in mortgage rates may be helping to keep more people in the market.”
Maybe. But those lower rates are doing little to encourage many homeowners to sell. The average homeowner held on to their property for 8.4 years, the longest ownership tenure in at least 25 years.
In California, the average home-seller owned their home for about 11.5 years, including 13 years in San Francisco and Eureka.
Affordability and high mortgage rates, at least compared to a few years ago, are causing many homeowners to hold off selling. “Many sellers are staying put—either because they’re locked into low rates or unwilling to accept offers below expectations,” said Chen Zhao, head of economic research for Redfin.
Home-seller profits, profit margins Q3 ’25
| City | Profit | Profit vs. a year ago | Profit margin |
|---|---|---|---|
| Bakersfield | $135,000 | -4.9% | 60.0% |
| Fresno | $150,000 | -10.7% | 57.7% |
| Los Angeles | $349,500 | -6.6% | 57.2% |
| Riverside | $220,000 | -6.4% | 63.0% |
| Sacramento | $200,000 | -11.1% | 54.8% |
| San Diego | $350,000 | -7.9% | 64.8% |
| San Francisco | $450,000 | -7.2% | 72.0% |
| San Jose | $740,000 | -2.9% | 94.3% |
| Santa Rosa | $276,500 | -8.4% | 55.5% |
| Ventura County | $301,000 | -7.4% | 55.8% |
Source: ATTOM Data
