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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 70 J O U R N A L July 2023 homeowner in the Lone Star State and can say goodbye to Golden State prices. Homes cost, on average, about $282,000 less here compared to California, amounting to a 70% price tag difference. Zooming in on county-to-county migra- tion patterns, two moving routes can result in savings of over $1 million. Buying a home in the Dallas area as opposed to one in San Jose can result in savings of over $1 million, on average, as the home price difference between Santa Clara and Dallas counties is a whopping 258%. The second-biggest difference in listing prices is between San Mateo and Travis counties, at 243%, giving homebuyers a chance of nearly $1.3 million on average in savings. Most Californians Can Save Over $1,000 in Rent When Moving to Texas Renters can easily afford to live in the 25 most popular Texas destinations without shelling out more than 25% on rent, except for the San Diego to Dallas County moving route. Moreover, on 18 of the moving routes, they can save over $1,000 a month in Texas as compared to their California county of origin. They can also make hefty savings if they switch from renting in one state to another. Except for the Los Angeles County to Collin County route, renters pay over 50% more in California versus their Texas destinations. The Los Angeles County to El Paso County move yields the highest savings, as the difference in rents sits at 154%. Renters can pocket close to $1,580 a month if they make the switch. The second-best savings go to those moving from the San Diego area to San Antonio, with a 110% difference in rental rates, a saving of roughly $1,470 on rent per month. FLIPPERS ACCOUNTED FOR 9% OF Q1 HOME SALES NATIONWIDE A TTOM's Q1 2023 U.S. Home Flipping Report shows that 72,960 single-family homes and condo- miniums in the nation were flipped in the first quarter of the year—representing 9% of all sales nationwide. Year over year, this read- ing was down from 9.4% of all home sales in the nation during Q1 of 2022 but was still up from 8% in Q4 2022, hitting the second-high- est level this century. The report also revealed that while flipping activity rose, mixed trends emerged for raw profits and profit margins. Profits and investment returns both increased slightly from Q4 2022 to Q1 2023, but both also remained near low points over the past decade, reflecting ongoing financial struggles for home flippers. The quarterly gain in the typical profit margin, of 22%, represented a modest rever- sal of fortune for investors following three years of nearly continuous declines that began well before a slowdown in the broader U.S. housing market last year. "Home-flipping investors across the U.S. may have finally halted the decline," said Rob Barber, CEO of ATTOM. "In the first quarter, profit margins showed a slight upward turn after an extended slump, while interest in flipped homes continued to rise among buyers. However, investors shouldn't assume they're out of the woods just yet. Home-flipping carrying costs can easily erase a 22% return on gross profits, and it's possible that the recent gain is merely a temporary blip. Nevertheless, the first-quarter trends offer some hope for investors indicating that brighter times may lie ahead." Among flips nationwide, the gross profit on typical transactions (the difference between the median purchase price paid by investors and the median resale price) increased to $56,000 in Q1 2023, down 20% from the $70,000 reported in Q1 2022, and still stood at one of the lowest points since the U.S. housing market began recovering in 2012 from the Great Recession that struck in the late 2000s. Nevertheless, the total profit of typical flips nationwide was up 4.7% from $53,500 in Q4 2022. The typical gross flipping profit of $56,000 in Q1 2023 translated into a 22.5% return on investment (ROI) compared to the original acquisition price. While the typical margin remained down from 26.9% in Q1 2022—and was still less than half of the 51.5% level recorded in the middle of 2020—it inched up from 21.7% in Q4 2022. Profits and profit margins turned around a bit in Q1 2023, as median resale prices on "Home-flipping investors across the U.S. may have finally halted the decline." —Rob Barber, CEO, ATTOM