Last year, home flipping reached its highest rate since 2006, according to ATTOM Data Solution’s 2019 U.S. Home Flipping Report, released Thursday. But despite the increase, profit margins have dropped, the report shows.
In 2019, 245,864 single-family homes and condos in the U.S were flipped—that represents 6.2% of all home sales during the year. Those home flips generated a gross profit, on average, of $62,900 nationwide, representing the difference between the median sales price and the median paid by investors. That is down 3.2% from $65,000 in 2018.
That’s not to say that the home-flipping industry is tanking or losing its allure for investors, says Todd Teta, chief product officer at ATTOM Data Solutions. Home-flipping rates are still higher than they’ve been in years, he says, but the cost of buying properties has been rising faster than have gains on resale in recent months.
“Home-flipping profits across the U.S. dropped again in 2019 as the business of buying and selling houses absorbed its worst year since the housing market was mired in the fallout from the Great Recession,” Teta says………Read More