{"id":18239,"date":"2020-12-21T13:25:43","date_gmt":"2020-12-21T13:25:43","guid":{"rendered":"http:\/\/www.anthonydidonato.net\/wordpress\/?p=18239"},"modified":"2020-12-21T13:25:43","modified_gmt":"2020-12-21T13:25:43","slug":"home-flipping-drops-even-as-profits-reach-new-highs","status":"publish","type":"post","link":"https:\/\/www.anthonydidonato.net\/wordpress\/home-flipping-drops-even-as-profits-reach-new-highs\/","title":{"rendered":"Home Flipping Drops Even as Profits Reach New Highs"},"content":{"rendered":"

Home Flipping Drops Even as Profits Reach New Highs<\/h1>\n
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Fewer investors are taking on home flips during the pandemic. But many of those who\u2019ve stayed with it are seeing profits rise.<\/p>\n

The number of home flips dropped again in the third quarter, comprising only 5.1% of all home sales, ATTOM Data Solutions reports. Home flipping reflects a transaction in which the property is bought and sold within 12 months.<\/p>\n

The gross profit on a typical home flip nationwide\u2014which is the difference between the median sales price and the median paid by investors\u2014increased to $73,766, the highest amount since at least 2000, ATTOM Data Solutions reports. That also is up significantly from $61,800 in gross profits recorded a year ago.<\/p>\n

The markets seeing some of the highest home flipping profits in the third quarter compared to a year ago were Brownsville, Texas (return on investment up 182.9%); Austin, Texas (up 176.4%); Waco, Texas (up 157.4%); and Springfield, Mo. (up 145.3%), according to the report.<\/p>\n

\u201cHome-flipping again generated higher profits on less transactions across the United States in the third quarter of 2020 as investors continue to make more money on a declining number of deals,\u201d says Todd Teta, chief product officer at ATTOM Data Solutions. \u201cThis all happened in the context of the pandemic, which has created unusual circumstances for the housing market to thrive, and that has included the home-flipping business. Too much is uncertain these days to say whether the latest trends will continue. But for now, the prospects continue looking up for home flipping after a period when they were trending the opposite way.\u201d<\/p>\n

Home flipping as a portion of sales was down in the third quarter in 93% of the 159 metro markets that ATTOM tracks. The largest quarterly decreases in the home flipping rate nationwide occurred in Killeen, Texas (where the rate was down 44.5%); Savannah, Ga. (down 43%); York, Pa. (down 42%); and Greeley, Colo. (down 41.5%).<\/p>\n

On the other hand, the largest increases in home-flipping rates occurred in Davenport, Iowa (up 18.5%); Hilton Head, S.C. (up 16.8%); Scranton, Pa. (up 12.2%); Amarillo, Texas (up 10.9%); and Kalamazoo, Mich. (up 7.7%).<\/p>\n

Some additional highlights from ATTOM Data Solutions\u2019 latest report:<\/p>\n