Profits from home sales have been rising in recent years. They are now generating net returns with substantial gains for sellers.

"Homeowners who sold during the third quarter realized an average price gain of $40,658 (17 percent) from the purchase price of their property, the highest average price gain for home sellers since the third quarter of 2007," according to RealtyTrac's third quarter 2015 U.S. home sales report, and reported by the National Association of Realtors.

"An increasing number of home owners in 2015 have been cashing out the home equity they've gained during the housing recovery of the past three years," says Daren Blomquist, vice president at RealtyTrac. "That may be a good decision because the data points to a plateauing market going forward," he noted.

"Home price appreciation is slowing, a trend that will continue if interest rates rise in the coming months as expected. Meanwhile the threat of rising interest rates combined with lowered premiums for buyers using FHA loans is spurring more demand," continued Blomquist.

To demonstrate their point, RealtyTrac found that sellers in the following counties saw, on average, some of the largest gains in the third quarter:

San Francisco County, California: 58.7 percent gain; San Mateo County, California: 55.7 percent; Santa Clara County, California: 47.7 percent; Alameda County, California: 43.1 percent; New York County, New York: 41.6 percent.

Q: Are commercial mortgage originations rising?

A: Yes, indeed. Originations are up 12 percent from this time last year, according to the Mortgage Bankers Association.

"Commercial mortgage borrowing and lending continued to grow during the third quarter," said Jamie Woodwell, MBA's vice president of commercial real estate research. "Every major investor group and property type except one has seen increases in year-to-date lending volumes, and we expect year-end numbers to continue that trend."

Q: Are home prices rising?

A: Existing home sales are rising in most areas, despite a low inventory. That means prices are also increasing.

"The median existing single-family home price increased in 87 percent of measured markets, with 154 out of 178 metropolitan statistical areas showing gains based on closings in the third quarter compared with the third quarter of 2014," was reported by the National Association of Realtors.

Lawrence Yun, NAR chief economist, said there's no question the housing market had its best quarter in nearly a decade. "The demand for buying picked up speed in many metro areas during the summer as more households entered the market, encouraged by favorable mortgage rates and improving local economies," he said.

"While price growth still teetered near or above unhealthy levels in some markets, the good news is that there was some moderation despite the stronger pace of sales."

The NAR report noted that the "national median existing single-family home price in the third quarter was $229,000, up 5.5 percent from the third quarter of 2014 ($217,100). The median price during the second quarter of this year increased 8.2 percent from a year earlier."

Q: If paying for a mortgage is less expensive than renting, why don't more renters buy a home?

A: Saving for a down payment is the big problem. A recent news release from Zillow describes the problem:

"Paying for a mortgage is still more affordable than renting in the U.S., but saving enough money for a down payment has become increasingly difficult for first-time buyers, especially in markets where home values are rising rapidly.

"With the majority of renters in the largest metros putting about 30 percent of their monthly income toward a rental payment, saving money for a 20 percent — or even 10 percent — down payment is extremely difficult. First-time homebuyers and millennials are left trying to find other ways to break into the housing market, turning to friends and family for financial help. In 2014 alone, 13 percent of home purchases were bought using a loan or gift from friends or family for the down payment.

"Rental affordability worsened in 28 of the 35 largest metros over the past year, and mortgage affordability worsened in just 18 of them."

To find out more about Jim Woodard and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate website at www.creators.com. Jim Woodard's email: storyjim@aol.com.

Photo credit: 401(K) 2012