Flipping Profits Flop To 8-Year Low
March 6, 2020 9:09 AM
by
Keith Griffin
News

More and more people are flipping houses. The bad news is profits are dropping and have hit an eight-year low.

ATTOM Data Solutions, a housing market data curator, released its year-end 2019 U.S. Home Flipping Report. It shows that 245,864 single family homes and condos in the United States were flipped in 2019, up 2 percent from 2018 to the highest point since 2006.

While flipping activity rose, ATTOM says profit margins continued dropping. Homes flipped in 2019 typically generated a gross profit of $62,900 nationwide (the difference between the median sales price and the median paid by investors), down 3.2% from $65,000 in 2018 year and 6% from the post-recession peak of $66,899 in 2017.

The typical gross flipping profit of $62,900 translated into a 40.6% return on investment compared to the original acquisition price. That was down from a 45.8% gross flipping ROI in 2018 and down from 51.4% ROI in 2017. The latest typical return on home flips stood at the lowest point since 2011.

Read more about flipping volume and flopping profits.

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