IRVINE, Calif. – June 6, 2019 – ATTOM Data Solutions' Q1 2019 U.S. Home Flipping Report, finds that 49,059 U.S. single family homes and condos were flipped in the first quarter of 2019 – down 2% from the previous quarter and down 8% from a year ago. By total number of flips, it's at a three-year low.
"With interest rates dropping and home price increases starting to ease, investors may be getting out while the getting is good, before the market softens further," says Todd Teta, chief product officer at ATTOM Data Solutions. "While the home flipping rate is increasing, gross profits and ROI are starting to weaken, and the number of investors that are flipping is down 11% from last year. Therefore, if investors are seeing profit margins drop, they may be acting now and selling before price increases drop even more."
Flips made up 7.2% of all home sales during the quarter, up from 5.9% in the previous quarter and up from 6.7% year-to-year. It's the highest home flipping rate since Q1 2010.
Homes flipped in Q1 2019 sold at an average gross profit of $60,000, down from an average gross flipping profit of $62,000 in the previous quarter and down $68,000 in Q1 2018. It's the lowest average gross flipping profit since Q1 2016.
The average gross flipping profit of $60,000 in Q1 2019 translated into an average 38.7% return on investment compared to the original acquisition price, down from a 42.5% average gross flipping ROI in Q4 2018 and down from an average gross flipping ROI of 48.6% in Q1 2018 to the lowest level since Q3 2011 – a nearly eight-year low.
Overall, Florida metros and zip codes fell somewhere in the middle of ATTOM's numbers, with only two of note: Eight U.S. zip codes have a flipping rate higher than 30%, and ATTOM found that zip code 33147 in Miami-Dade County had a flipping rate of 32.7%.
In addition, Naples was cited as the U.S. city where it takes the longest time to flip a home – 235 days.
© 2019 Florida Realtors
