U.S. Home Flipping Rates Rise in First Quarter of 2024

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IRVINE, CA — The latest U.S. Home Flipping Report from ATTOM reveals that home flipping activity surged in the first quarter of 2024. A total of 67,817 single-family homes and condominiums were flipped during this period, representing 8.7% of all home sales nationwide from January through March.

This figure marks an increase from 7.7% in the fourth quarter of 2023, showing a continued upward trend. However, it still lags behind the 9.8% recorded in the same quarter last year.

Investors in the home flipping market have seen improved fortunes. The report indicates that flippers earned a 30.2% gross profit before expenses on homes sold in the first quarter. This marks the third time in four quarters that margins have increased, following six years of mostly declining returns.

Despite these gains, the typical profit margin remains about 25 percentage points below its 2016 peak. It also remains vulnerable to carrying costs like renovation expenses, mortgage payments, and property taxes. Nevertheless, it shows improvement from the previous quarter and from a low of about 25% in the first quarter of last year.

Nationwide, gross profits on flips rose to $72,375 in the first quarter. While this is down from the $80,000 high reached in 2022, it represents an increase from $65,000 in the fourth quarter of 2023 and is about $10,000 above the lowest point of last year.

These improvements reflect a rejuvenated pattern where investors benefit from favorable price shifts between purchase and resale. In the first quarter, the typical resale price of flipped homes increased to $312,375, a 4.1% rise from the fourth quarter of 2023. This outpaced the 2.1% increase in median purchase prices for flippers, driving better investment returns.

Flipping rates rose in 134 of the 173 metropolitan areas analyzed, which cover regions with populations of at least 200,000 and at least 50 home flips in the first quarter. Most declines were minor, less than two percentage points.

Among these metros, Warner Robins, GA, saw the highest flipping rate, with flips comprising 18.7% of all home sales. Other notable areas included Macon, GA (17.1%), Fayetteville, NC (15.8%), Atlanta, GA (14.7%), and Memphis, TN (14.6%).

The continued growth in flipping rates and profits suggests a robust market for investors capitalizing on rising home prices and strategic property acquisitions.

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