Home Flipping Up in Q1, ATTOM Reports
(Image courtesy of ATTOM)
ATTOM, Irvine, Calif., released its first-quarter 2024 U.S. Home Flipping Report, finding that 67,817 single-family homes and condos were flipped in the quarter. That’s 8.7% of all home sales nationwide during the period.
That’s up from 7.7% of all sales during Q4 2023, but down from 9.8% in Q1 2023.
Home flippers also saw a rise in profits–they typically earned a 30.2% gross profit nationwide before expenses. That’s an increase from Q4, and from a roughly 10-year low point of about 25% in Q1 2023.
However, that’s still about 25 percentage points below the peaks hit in 2016, and is within a range that could be wiped out by carrying costs such as renovation expenses.
Gross profits hit $72,375–down from the $80,000 high hit in 2022, but up from $65,000 in Q4 2023.
The nationwide resale price on flipped homes was about $312,375, up 4.1% from Q4 2023.
“The latest numbers show that investors still face an uphill climb to clear significant profits after expenses,” said Rob Barber, CEO for ATTOM. They, like others, also face tenuous times amid a housing market boom that’s cooled down over the past year. But we now have a year’s worth of a trend showing that things have started to turn around for the flipping industry, with clear signs of increasing interest flowing into the market.”