Though profit margins from home flipping dipped to their lowest level since Q1 2011, there are places in the US where home flipping profit margins increased. These places are identified here as well as other data about Q3 2021 home flipping.
Q3 2021 Home Flipping Analysis Indicates Flipped Homes/Condos Accounted for 5.7% of Total Sales
ATTOM’s recently released Q3 2021 Home Flipping Report indicated that single-family houses and condos flipped in Q3 accounted for 5.7% of total home sales. This 5.7% translated into one in 18 transactions and reflected an increase from 5.1%, or one in 20 sales during Q2 2021, and from 5.2%, one in 19 sales, during Q3 2020.
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Where Home Flipping Rates Increased During Q3 2021
73% of metro areas analyzed by ATTOM for this report saw that home flips as a portion of all home sales increased from Q2 2021 to Q3 2021.
Among metros with populations of 200,000 or more, the largest flipping rates occurred in:
- Ogden UT – 9.5$
- Phoenix AZ – 9.5%
- Salisbury MD – 9.3%
- Salt Lake City UT – 9.3%
- Laredo TX – 9.2%
The largest flipping rates in metros with populations of 1M or more, aside from Phoenix and Salt Lake City, occurred in:
- Memphis TN – 9%
- Oklahoma City OK – 8.8%
- Austin TX – 8.5%
Counties with the highest home flipping rates included:
- Camden County NC – 15.9%
- Lumpkin County GA – 15.1%
- Logan County KY – 14.7%
- Canadian County OK – 14.4%
- Palo Pinto County TX – 12.4%
- Fannin County GA – 12.2%
- Dekalb County TN – 12.1%
Days on the Market for Flipped Homes in Q3 2021
The turnaround time for flipped homes from sale to resale in Q3 2021 averaged 147 days, the lowest turnaround time since Q3 2010. This turnaround time of 147 days was down from an average of 148 days in Q2 2021 and from 189 days in Q3 2020.
Counties with the shortest turnaround times included:
- Marion County OR – 23 average days to flip
- Cape May County NJ – 37 days
- Lumpkin County GA – 38 days
- Liberty County GA – 42 days
- Kauai County HI – 48 days
Typical Raw Profits Down in Q3 2021
ATTOMS’s Q3 2021 home flipping report indicated that typical raw profits dropped from $70,000 in Q3 2020 to $68,847 in Q3 2021, a decline of -1.6%.
However, typical raw profits were up quarter-to-quarter +2.7% from $67,008 in Q2 2021.
Profit Margins in Q3 2021 Dropped
Q3 2021 home flipping profit margins dropped to just a 32.3% ROI compared to the original acquisition price.
Likewise, the gross flipping profit of $68,847 in Q3 2021 was down 33.2% in Q2 2021 and from 43.8% in Q3 2020. This gross flipping profit of $68,847 was the lowest level of gross flipping profit since Q2 2011.
Thanks to ATTOM Data Solutions.
