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More Home Flipping, Less Profit

Posted To: MND NewsWire

Home flipping, defined as buying a home and reselling it (in two arms-length transactions) within a year, accounted for 7.5 percent of all home sales in the first quarter of this year. The share in the prior quarter and the first quarter of 2019 was 6.3 percent and 7.3, respectively. It was the highest market share since the second quarter of 2006, when flips accounted for nearly 9 percent of sales. ATTOM Data Solutions says 53,705 single-family homes and condos qualified as flips during the quarter. At the prior peak in 2006 there were around 80,000 homes were considered flips. But the investors who are doing the flipping are seeing diminishing returns. Homes flipped in the first quarter of 2020 were sold for a median price of $232,000, with a gross flipping profit of $62,300 above the median…(read more)

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