flexiblefullpage - default
interstitial1 - interstitial
Currently Reading

Home Flipping Market Reports 13-Year Low

Advertisement
billboard -
News

Home Flipping Market Reports 13-Year Low

Despite dropping profits, the flipping market remains at its third-highest level in a decade


By Caroline Broderick December 21, 2022
house flipping market low
Photo: Sono Creative | stock.adobe.com

The typical profit margins for house flipping hit a low in the third quarter of 2022, according to the latest data from leading real estate data curator ATTOM. 

A total of 92,422 single-family homes were flipped in Q3 2022, and the typical gross profits hit their lowest point in nearly three years. The drop in profits also marks the fastest quarterly rate of decline in profits since 2009. This totaled to a gross profit of $62,000, down 18.4% from Q2 profits of $76,000. One year ago, profits averaged $70,000.

House flips accounted for 7.5% of all home sales in Q3 2022, down from 8.2% in the previous quarter. Still, ATTOM reports house flipping remains at its third-highest level in the past 10 years. The highest point came in Q1 2022 with 9.7% of home sales.

“This is a classic good news/bad news report for fix-and-flip investors,” said Rick Sharga, executive vice president of market intelligence at ATTOM. “While flipping activity in the third quarter was among the highest on record, gross profits and profit margins declined significantly, reflecting the overall pricing weakness in today’s housing market.”

Typical resale prices of flipped homes in Q3 2022 dropped to $310,000 from $328,000 in the previous quarter, up from $290,000 one year prior.

“With demand from buyers weakening, prices trending down over the past few months, and financing rates significantly higher than they were at the beginning of the year, flippers face a much more difficult environment today, and probably will in 2023 as well,” said Sharga.

 


written by

Caroline Broderick

Caroline Broderick is the Managing Editor for Pro Remodeler. Most recently, she served as the associate editor for PR's sister publications, Pro Builder, Custom Builder, and PRODUCTS where she covered design, building products, trends, and more in the residential construction industry. She can be reached at cbroderick@sgcmail.com.
 


Comments (1)

  • Submitted by Todd Chionis (not verified) on Thu, 01/19/2023 - 18:03

    Permalink

    Can I just say, GREAT!! As a professional carpenter and remodeling contractor I am happy to hear this news. Flipping is suspect at best in terms of quality, proper techniques, inspections/permits. The mere fact that a flipper looks at a home as a quick buck turnaround should make anyone extremely hesitant to purchase a flipped home. Most flipped homes we have had the misfortune of working on are money pits for the current owners. We have needed to remove improperly done work and bring homes up to code, remove poorly installed items only to find they were band aids for even worse items.
    Do your due diligence! Check for permits being pulled and closed out, hire a quality inspector, and better yet, pay a quality contractor to walk through your home before you purchase it!!

    Sincerely
    Top Drawer Carpentry

Add new comment

Plain text

  • No HTML tags allowed.
  • Web page addresses and email addresses turn into links automatically.
  • Lines and paragraphs break automatically.

Related Stories

Seats Limited: Women in Residential + Commercial Construction Conference

Join 300 women in Nashville from October 25-27 for the ninth annual women's construction conference

NARI Announces New Co-CEOs

The National Association of the Remodeling Industry announces two tenured leaders as co-CEOs, concluding a six month vacancy

Leaf Home Hires Chief Growth Officer as Company Continues to Expand

Nina George joins the large home improvement company and will drive efforts to add new locations and new product lines

Remodeling Spending to Decline at Faster Rate, Says Harvard

Remodeling spending may drop for the first time since 2020, according to predictions from Harvard's Remodeling Futures Program

New Immigration Law Adds to Contractor Labor Woes

Migrant workers are fleeing Florida and construction companies are feeling the impact

What Fuels Window and Door Projects?

Two recent surveys identify the top reasons homeowners opt for window and door replacement projects

4 Things for Remodelers to Understand About Google Analytics 4

The new era of Google Analytics is here, and it's set to help you make better marketing decisions through in-depth metrics

Inspiration for Disney Movie Invincible to Headline Premier Remodeling Industry Event

Former Philadelphia Eagles team captain Vince Papale will share his made-for-Hollywood underdog story with remodeling and home improvement professionals at Pro Remodeler's The Pinnacle Experience 2023

NAHB Remodeler of the Year: Robert Greaves

By prioritizing employees, customers, and community, People Come First Construction Group rises to the top of the remodeling ranks

Leading with HEART: A Remodeler's Book on Leadership, Company Values

F.H. Perry Builder Owner Allison Iantosca shares the experience of writing a book based on her company's values

Advertisement
boombox1 -
Advertisement
boombox2 -
Advertisement
native1 -

More in Category


News

NARI Announces New Co-CEOs

The National Association of the Remodeling Industry announces two tenured leaders as co-CEOs, concluding a six month vacancy



Advertisement
native2 -
Advertisement
halfpage1 -
Advertisement
leaderboard1 -