Key Highlights

  • Q1 2020 home flipping represented 7.5% of all home sales in the quarter
  • Q1 2020 home flipping rate hit highest level since Q2 2006
  • Typical gross flipping profit rendered 36.7% ROI, lowest level since Q3 2011

ATTOM Data Solutions’ Q1 2020 US Home Flipping Report represents both good and bad news for the home flipping sector of the housing market in Q1 2020. The good news – 53,705 single-family homes and condos in the US were filliped in Q1 representing 7.5% of all home sales in Q1 2020, the highest level of flipping since Q2 2006. The bad news – the gross profit on a typical home flip nationwide in Q1 2020 was $62,300 or a 36.7% ROI, the lowest level for home flipping since Q3 2011.

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Q1 investors in home flipping were not able to keep pace with soaring home prices. Could a drop in home prices due to a COVID pandemic fallout further stab investor profits in the home flipping sector of the housing market?

According to Todd Teta, chief product officer at ATTOM Data Solutions, “(Home flipping) profits are down and are lower than they’ve been since the dark days following the Great Recession, which is a sign that investors aren’t keeping up with price increases in the broader market. Enter now the coronavirus pandemic and the prospects for home flipping are notably uncertain, at least in the short term. We should know a lot more in a few months about whether home prices drop and investors get hit hard or whether they can increase their profit margins.”

ATTOM found that home flipping rates were up in 87% of local markets in Q1 2020. Markets with the highest quarterly increases with at least 1M people in home flipping included…

  • Boston – +80.2%
  • Springfield MA – +76%
  • Olympia WA – +73%
  • York PA – +71.4%
  • Minneapolis MN – +69.3%
  • Grand Rapids MI – +57.7%
  • Richmond VA – +51.5%
  • Rochester NY +49%

Markets of at least 1M people with the largest increases of ROI included…

  • Dallas – +38%
  • San Antonio – +36%
  • San Diego – +20%
  • Chicago – +20%
  • Oklahoma City – +18%

In terms of raw profits due to home flipping, 13 of the 15 highest profit centers measured in dollars were located in the West and Northeast. San Francisco led the pack, followed by San Jose, Los Angeles, New York and Honolulu.

 

Thanks to ATTOM Data Solutions.

Also read: Home Prices Expected to Drop by Next Year, Podcast: Does Being Rich Make You Happier? (The Answer Isn’t What Were Told) | Tim and Julie Harris, What’s Coming Next? “The Worst Economy in Our Lifetime”