Home Prices Hit Record Highs While Profit Margins Plummet: Why Property Intelligence Is No Longer Optional
ATTOM's just-released Year-End 2025 U.S. Home Sales Report reveals a market where the stakes have never been higher—and where the difference between a smart purchase and a costly mistake often comes down to one thing: intelligence.
The Numbers That Should Keep You Up at Night
Let's start with what the headlines will trumpet: the national median home sale price hit $360,000 in 2025—a record high, up 2.6% from 2024 and a staggering 39% higher than 2020.
But here's what most people will miss: profit margins dropped to 49%, down from 55% just a year ago. That's three consecutive years of declining returns since the 2022 peak.
Translation? Buyers are paying more. Sellers are keeping less. And the margin for error has all but evaporated.
Florida: A Cautionary Tale in Asymmetric Information
The geographic data tells an even more troubling story. Nine of the ten metros with the largest profit margin declines were in Florida:
- North Port: Margins down 24 percentage points
- Cape Coral: Down 22 points
- Deltona: Down 22 points
- Palm Bay: Down 19 points
- Port St. Lucie: Down 16 points
Meanwhile, Tampa dropped 15 points, Jacksonville fell 13, and Miami shed 11.
Ask yourself: How many buyers in those markets knew what they were walking into? How many had comprehensive property intelligence before they signed? How many found out the hard way that the "deal" they thought they got was actually the top of a declining market?
The Institutional Advantage
Here's a detail that should concern every individual buyer: institutional investors now account for 6.6% of all home purchases—and in markets like Memphis, they're buying nearly 15% of everything sold.
These aren't mom-and-pop investors. These are sophisticated operations with data science teams, proprietary analytics, and intelligence capabilities that dwarf what the average buyer brings to the table.
They're not just buying houses. They're buying information asymmetry. And they're winning.
The All-Cash Signal
Another data point worth noting: 39.1% of homes in 2025 were purchased with all cash—the highest share since 2013. In Naples, Florida, that number hits 62%.
When nearly two-thirds of buyers in a market don't need financing, they're operating with advantages most buyers can't match. Speed. Certainty. Negotiating leverage.
But here's what they all have in common: they do their homework before they write the check.
The REFax™ Imperative
There's a reason we say "Get REFax™ Before You Buy."
You wouldn't purchase a used car without running a Carfax report. The vehicle's history—accidents, title issues, service records—directly impacts its value and your risk.
Real estate is no different. Actually, it's worse. A car might cost you $30,000. A home is likely the largest financial decision you'll ever make.
Yet most buyers go in blind. They trust listing photos. They accept seller disclosures at face value. They assume their agent has done the due diligence.
REFax™—Real Estate Facts & Analytics Exchange—exists to change that.
We apply intelligence tradecraft to property analysis. We aggregate data from multiple sources, validate it through AI-powered systems, and deliver actionable intelligence in minutes—not days.
- Property history that goes beyond what the seller wants you to know
- Risk flags that surface issues before they become your problem
- Market context that tells you whether you're buying at a peak or a trough
- Comparable analysis based on actual data, not wishful thinking
The Bottom Line
The ATTOM report makes clear: 2025 was a year of records and reckoning. Prices climbed while margins compressed. Sophisticated buyers gained ground while individual purchasers faced headwinds they often didn't see coming.
In this environment, property intelligence isn't a nice-to-have. It's the difference between buying smart and buying blind.
The question isn't whether you can afford a REFax™ report.
It's whether you can afford not to have one.
REFax™ is a product of Monadnock Cyber, LLC—a guerrilla AI lab applying intelligence community tradecraft to real estate analytics. Learn more at GetREFax.com.
Sources:
- ATTOM Year-End 2025 U.S. Home Sales Report (January 29, 2026)
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