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INVESTMENT GOVERNMENT PROPERTY PRESERVATION TECH
Journal
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Journal
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HOUSE FLIPS
DOWN BUT
PROFITS
REBOUND
e second quarter experienced the
flipping of 53,621 single-family homes and
condominiums, or 6.7% of all home sales,
according to new statistics from ATTOM
Data Solutions. is represented one in 15
transactions.
e second quarter's flipping total was
down from 7.5% of all sales, or one in 13,
during the first quarter, but up from 6.1%, or
one in 17 sales, during the second quarter of
2019.
Homes flipped in the second quarter were
sold for a median price of $232,402. e gross
profit on the average home flip—defined by
ATTOM as the difference between the median
sales price and the median paid by investors—
was $67,902 in the second quarter, up from
$63,000 in the first quarter and from $61,900
in the second quarter of last year. e gross
profit of $67,902 represented a 41.3% return on
investment compared to the original acquisition
price.
ATTOM also reported that 15.6% of
flipped homes were sold to buyers using a loan
backed by the Federal Housing Administration,
the highest point since the second quarter of
2017. Home flippers took an average of 183
days to complete the transactions, up from an
average of 174 in the first quarter but down
from 184 days in the second quarter of last year.
"Home flipping was a study in contrasts in
the second quarter of 2020, as the flipping rate
went one way and profits went the other," said
Todd Teta, Chief Product Officer at ATTOM
Data Solutions. "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.
at 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."
