Gathering of Eagles

The Gathering of Eagles conference is the Trusted Source, offering brokers, managers and leaders valuable insider industry information on how to run a profitable business.

Rankings

REAL Trends identifies the country’s largest and most successful agents and firms ranked by closed transaction sides and separately closed sales volume.

Broker Sentiment

Finding Inventory & Handling Multiple Offers Weigh Heavy on Brokers’ Minds in Q12021 Survey.

Newsletter

The REAL Trends monthly newsletter is known as the trusted industry source for information on trends, strategies, analysis, people and news shaping the real estate industry of tomorrow.

Home Flipping Declining as Price Gains Decrease

Investors are starting to step away from flipping homes as home price gains slow. The U.S. Home Flipping Report shows that the number of single family homes and condos flipped in the third quarter was down 12 percent from a year ago to the lowest level since early 2015, according to the report from ATTOM Data Solutions, a real estate data provider.

 

A total of 45,901 single-family homes and condos were flipped in the third quarter, comprising 5 percent of all single-family home and condo sales during the quarter.

“Home flipping acts as a canary in the coal mine for a cooling housing market because the high velocity of transactions provides home flippers with some of the best and most real-time data on how the market is trending,” says Daren Blomquist, senior vice president at ATTOM Data Solutions. “We’ve now seen three consecutive quarters with year-over-year decreases in home flips.” Blomquist says the last time this occurred was in 2014, following a jump in mortgage rates during the second half of 2013.

Homes that were flipped in third quarter sold for an average of $63,000 more than what the home flipper purchased them for, which is down from a record high average gross flipping profit of $68,000 in the first quarter, according to the report.

ATTOM chart. Visit source link at the end of the article for more information.

© ATTOM.

The metro areas (with populations of at least 200,000) that posted the highest average gross flipping returns in the third quarter were: Pittsburgh (136.7%); Cleveland (120.2%); Atlantic City, N.J. (110.3%); Scranton, Pa. (109%); and Philadelphia (107.9%).

The metros with the overall highest home flipping rates in the third quarter were: Memphis, Tenn. (10.4%); Atlantic City, N.J. (9.1%); Phoenix (8.6%); Las Vegas (7.8%); and Huntsville, Ala. (7.5%).

ATTOM Data Solutions’ report on flipped homes purchased in third quarter also observed that:

  • The median year built of homes flipped in the third quarter was 1978.
  • The median square footage of homes flipped was 1,408, the smallest median square footage dating back to the first quarter of 2000.
  • Nearly one-third of home flips sold for $100,000 to $200,000

Source:
U.S. Home Flips Down 12 Percent in Q3 2018 to 3.5-Year Low,” ATTOM Data Solutions (Dec. 5, 2018)

Most Popular Articles

Commission Class Action Lawsuits Are Missing the Point

The people bringing these real estate commission lawsuits don’t seem to understand the basic principles of the brokerage market.

Mar 02, 2021 By and

Latest Articles

Understanding International Business Transactions

Survey seeks to understand who’s buying property around the world and which markets are hot for both buying and selling.

Mar 05, 2021 By