Key Highlights
- According to ATTOM Data Solutions, gross profit on typical flip nationwide rose to $67,902 in Q2
- Profit of $67.902 translates into 41.3% ROI
- This first y/y gain since Q4 2017
The COVID pandemic reduced the number of people flipping houses in Q2 2020 while the profits of those flipping increased. According to ATTOM Data Solutions 2020 Home Flipping Report, the gross profit on a typical flipped house nationwide increased to $67,902 in Q2 from $61,900 in Q2 2019. This increase in flipping profit represents a 41.3% return on investment (ROI).
The improvement on ROI for flipped homes was the first y/y gain since Q4 2017 and the first quarterly gain since Q3 2018. The home flipped portion of all home sales decreased from Q1 2020 to Q2 2020 in 75.5% of metros analyzed with populations of 200,000 or more and at least 50 flips in Q2 2020.
Todd Teta, chief product officer with ATTOM, said, “Home flipping was a study in contrasts in the second quarter or 2020, as the flipping rate went one way and profits went the other. Far fewer house hunters were out in the market looking for homes, which probably cut into the pool of potential buyers that investors could tap. But at the same time, home flippers who were able to close deals did better than they had done in a year and a half. That likely flowed in large part from extremely low interest rates that enticed buyers who remained employed and were willing to house hunt within social distancing requirements.”
Flipped single-family homes or condos represented 6.7% of all home sales in Q2 2020, down from 7.5% of total home sales in Q1.
The largest increases in the home flipping rate in Q2 2020 happened in:
- Salisbury MD – +45.8%
- Fort Myers FL – +20.2%
- Tallahassee FL – +16.8%
- Corpus Christi TX – +14.1%
- Kennewick WA – +12.6%
House flipped in Q2 2020 were sold for a median price of $232,402. The largest profit gains in ROI were in:
- Fort Collins CO – +167%
- Johnson City TN – +115%
- Cedar Rapids OA – +100%
- Youngstown OH – +92%
- Chattanooga TN – +91%
Thanks to ATTOM Data Solutions.
