ATTOM: Home Flipping Decreases in Q1

(Image courtesy of Karl Solano/pexels.com)

ATTOM, Irvine, Calif., released its Q1 Home Flipping Report, showing that 67,394 single-family homes and condos were flipped in the period, accounting for 8.3% of all sales.

The total number was the lowest in a quarter since 2018.

In Q1 2024, flips were 8.7% of all sales. However, they were 7.4% of all sales in Q4.

Returns on flips have been falling, with the typical flipped home netting a 25% return on investment. That’s down from 28% in Q4 and well below the high of 48.8% hit in fall 2020.

The gross profits on a typical flipped home fell to $65,000. That compares with $70,000 in Q4 2024.

The typical investor paid $260,000 for a home they flipped in Q1 2025 and sold that property for $325,000.

Nationwide, the majority of homes flipped were bought with all cash, at 62.2%. That’s down slightly from 63.4% in the Q4, but flat from Q1 2024.

The average time it took from purchase to resale increased slightly from 157 days in Q4 to 164 days in in Q1.

Overall, 10.9% of flipped homes were sold to buyers who had Federal Housing Administration-backed mortgages, often used by first-time buyers, up from 10.5% last quarter and down from 11.1% in Q1 2024.

“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.”

“It’s tricky to balance at times when the market looks like it could take a downturn,” Barber continued. “Investors don’t want to buy a property when prices are high and then see them drop before they’re ready to sell.”