Home Flipping Declining as Price Gains Decrease
Investors are beginning back off from flipping homes as home price gains slow. The U.S. Home Flipping Report demonstrates the number of single houses and condos flipped from the third quarter was down 12 percent originating from a last year on the lowest level since early 2015, according to the report from ATTOM Data Solutions, an absolute estate data provider.
A total of 45,901 single-family homes and condos were flipped while in the third quarter, comprising 5 % off single-family home and condo sales throughout the quarter.
“Home flipping works as a canary within the coal mine for the cooling housing industry given that the high velocity of transactions provides home flippers with of the highest and the majority real-time data on what the industry is trending,” says Daren Blomquist, senior vice chairman at ATTOM Data Solutions. “We’ve now seen three consecutive quarters with year-over-year decreases in house flips.” Blomquist says one more time this occurred was at 2014, following a jump in rates on mortgages rising over the partner of 2013.
Homes that were flipped in third quarter sold with an average of $63,000 much more than just what home flipper purchased them for, that is down from your record high average gross flipping profit of $68,000 during the first quarter, as per the report.
The metros while using overall highest home flipping rates during the third quarter were: Memphis, Tenn. (10.4%); Atlantic City, N.J. (9.1%); Phoenix (8.6%); Vegas (7.8%); and Huntsville, Ala. (7.5%).
ATTOM Data Solutions’ number of flipped homes bought in third quarter also observed that:
- The median year built of homes flipped while in the third quarter was 1978.
- The median sq footage of homes flipped was 1,408, the tiniest median size since the 1st quarter of 2000.
- Nearly one-third of home flips sold for $100,000 to $200,000
“U.S. Home Flips Down 12 Percent in Q3 2019 to three.5-Year Low,” ATTOM Data Solutions (Dec. 5, 2019)