- Financed flips hit $32.5B in 2019, an increase of +21% compared to 2018
- The number of all-cash flips rose for the first time since 2010
- 2% of all home sales were flips, an 8-year high
Home flipping during 2019 sent mixed messages to the housing market. According to ATTOM Data Solutions’ just released 2019 Home Flipping Report, 245,864 single-family homes and condominiums were flipped in 2019, an increase of +2% from 2018 and its highest volume since 2006. On the other end of the equation, gross flipping profit dropped -3,2% from $65,000 in 2018 to $62,900 in 2019.
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Let’s take a look at the numbers:
- Median flipping purchase price in 2019 = $155,000
- Median sale price in 2019 = $217,990
- Average DOM = 178
- 2% of all sales, an 8-year high
- Gross flipping profit of $62,900 nationwide, -3.2% from $65,000 in 2018 and -6% post-recession peak of $66,899 in 2017
- Gross flipping ROI in 2019 was lowest since 2011 at 40.6%; 45.8% ROI in 2018, 51.4% ROI in 2017
Todd Teta, ATTOM’s chief product officer, said, “Home flipping profits across the US dropped again in 2019 as the business of buying and selling absorbed its worst year since the housing market moved upwards from the fallout from the Great Recession. This happened as the cost of buying properties continued to rise faster than gains on the resale end. That’s not to say that the home-flipping industry is tanking or losing its allure for investors because home flipping rates are higher than they’ve been in 8 years.”
Home flips as a portion of all sales increased in 64.2% of metro markets measured by ATTOM, or 122 of 190 metro areas. Metros with the largest increase in home flips included:
- Laredo TX – +103.5%
- Raleigh NC – +59.8%
- Charlotte NC – +44.1%
- Fort Smith AR – +43.2%
- Columbus GA – +40.5%
Metros with the largest decrease in home flips included:
- Seattle WA – -16.9%
- Indianapolis IN – -9.1%
- Grand Rapids MI – -8.0%
- Rochester NY – -5.9%
- Baltimore MD – -4.8%
Key takeaways during Q4 2019 included:
- 56,945 home flips were executed by 24,096 investors with a ratio of 2.36 flips/investor
- Average DOM – 170
- Median gross flipping profit was $62,500 with a 39.1% ROI, an 8-year low.
Thanks to Christine Stricker and Staff with ATTOM Data Solutions for source data.