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69 August 2025 J O U R N A L themortgagepoint.com August 2025 ยป This changing environment is con- sistent with Realtor.com's 2025 projection, which called for the most evenly distrib- uted market since 2016. However, the cur- rent transformation is taking place against a backdrop of chronic underbuilding, with a shortfall of about 4 million homes nationally, in contrast to previous buyer's markets that followed overbuilding. Local trends are therefore more important than ever for both buyers and sellers, as some metro areas may tilt into buyers' territory while others will stay tight. SHARE OF HOME FLIPS SLIPS IN POPULAR U.S. MARKETS T he Q1 2025 U.S. Home Flipping Report from ATTOM reveals that although home flipping is still a common strategy across the country, investor returns differ greatly by region. Here's a closer look at flipping activity nationwide in all states with adequate data, plus the District of Columbia, from busy metro areas to rural hotspots. According to the first quarter 2025 U.S. Home Flipping Report released to- day by ATTOM, a leading curator of land, property data, and real estate analytics, 67,394 single-family homes and condo- miniums were flipped in the first quarter of 2025, making up 8.3% of all home sales from January through March. As a percentage of total sales, the proportion of flipped properties increased from 7.4% to 8.3% in the previ- ous quarter. However, compared to the same period last year, when flips made up 8.7% of total sales, it was a little lower. Home Flips Vary Across U.S. Home flippers also seem to be impacted by the downturn in purchasing. The first three months of the year saw 67,394 home and condo flips nation- ally, the fewest in a quarter since 2018. Additionally, returns have been declining; in Q1 2025, the average flipped property generated a 25% return on investment (before expenses). This maintained a slow slide from the recent peak of 48.8% in the fall of 2020 and was lower than the 28% recorded in the preceding quarter. "The competitive home market means high prices, which is good for short-term investors on the selling end," said Rob Barber, CEO at ATTOM. "But that dynamic is also making it harder to find underpriced homes to buy up, and it's ultimately squeezing profit margins for the industry." Of the 173 metropolitan statistical re- gions with enough data to analyze, some 76.3% (132) saw a quarter-over-quarter increase in home flips as a percentage of total sales. However, in two-thirds (115) of the metro regions, the share was lower than it was at the same time last year. Metro areas that experienced at least 50 home flips in Q1 2025, with a population of 200,000 or more, were considered. Among the metro areas analyzed, home flippers accounted for the biggest share of sales in: 1. Macon, GA (flips compromised 21% of all home sales) 2. Warner-Robins, GA (20.6%) 3. Atlanta, GA (15.9%) 4. Memphis, TN (14.7%) 5. Akron, OH (13.3%) Rank Metro Change in Active Inventory vs. Pre-Pandemic 1 Denver +100.0 % 2 Austin, TX +69.0 % 3 Seattle, WA +60.9 % 4 Dallas-Fort Worth, TX +55.5 % 5 San Antonio +58.3 % 6 San Francisco +53.5 % 7 Nashville, TN +44.4 % 8 Orlando, FL +44.2 % 9 Las Vegas +28.6 % 10 Tucson, AZ +23.0 %