Single-family and condo flips represented 9.6% of all home sales during Q1 2022.
Home Flipping at Highest Level Since At Least 2000
According to ATTOM’s just released Q1 2022 Home Flipping Report, the home flipping rate of single-family homes and condominiums hit its highest level since at least 2000.
Home flipping during Q1 2022 accounted for 9.6% of all home sales, up from 6.9% in Q4 2021 and from 4.9% in Q1 2021.
This Q1 2022 jump in home flipping was the fifth consecutive quarterly increase in home flipping as well as the largest quarterly and annual percentage-point gains since 2000.
According to Rick Sharga, executive vice president of market intelligence for ATTOM, The good news for fix-and-flip investors is that demand remains strong from prospective homebuyers, as evidence by this quarter’s report, which shows that one of every 10 homes sold during Z1 was a flip.”
Raw Flipping Profits in Q1 2022 Down Y/Y
Though home flips jumped in Q1 2022, raw flipping profits were down on a year-over-year basis. Plus, profit markets for home flips fell to their lowest level since 2009.
Among nationwide home flips, gross profit on a typical flipping transaction in Q1 2022 was $67,000, up +5.5% from $63,500 in Q4 2021 but -4.3% down from the level of $70,000 in Q1 2021.
Q1 2022 flipping profits translated into 25.8% ROI, down from 27.3% ROI in Q4 2021 and down from 38.9% ROI in Q1 2021. ATTOM‘s latest report indicated that Q1 2022’s ROI hit its lowest level since Q1 2009. This latest ROI was also less than half the peak of 53.1% for this century, which came in late 2016.
“The bad news,” according to ATTOM’s Sharga, “is that rising mortgage interest rates are beginning to slow down home price appreciation rates, and buyers have become more selective – and less willing to outbid other buyers for properties they’re interest in. This is having a predictable impact on profit margins for investors.”
Flipping Rates as Portion of Home Sales
ATTOM’s Q1 2022 Home Flipping Report found that, as a portion of all home sales, home flips increased from Q4 2021 to Q1 2022 in 95% of US metros that ATTOM analyzed for this report.
Additionally, flipping rates increased quarterly by at least two percentage points in 52% of analyzed metros.
Metros with the highest flipping rates in Q1 2022 included:
- Phoenix AZ- 18.7% of all home sales
- Charlotte NC – 18%
- Tucson AZ – 16.2%
- Atlanta GA – 16.1%
- Jacksonville FL – 16%
Counties with Highest Home Flipping Rates in Q1 2022
- Pinal County AZ – 20.2% of all home sales
- Paulding County GA – 20.1%
- Gaston County NC – 20.1%
- York County SC – 20.0%
- Bristol County VA – 19.4%
- McCurtain County OK – 19.4%
- Gillespie County TX – 19.3%
- Clayton County GA – 19.0%
- Rockdale County GA – 18.6^
- Durham County NC – 18.5%
Thanks to ATTOM.
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