ATTOM Data Solutions recently released its Q4 and 2018 Year-End Home Flipping report that showed that 207,957 single-family homes and condos were flipped in 2018, down 4 percent from 216,537 flipped in 2017.
The 207,957 homes flipped in 2018 makes up 5.6 percent of all single-family home and condo sales in 2018.
A total of 146,020 individuals and institutions flipped homes in 2018, down 0.4 percent from 2017, but up 63.1 percent from the 89,539 that flipped 10 years ago.
“With mortgage rates remaining strong and people staying in their homes longer, we have started to see a bit of a flipping rate slowdown,” said Todd Teta, chief product officer at ATTOM Data Solutions. “However, this isn’t to say home flipping is going away. The market is still ripe with investors flipping and bargains still await, especially in the lowest-priced areas of the country, where levels of financial distress remain highest.”
Additionally, the total dollar volume of financed home flip purchases was $19.9 billion for homes flipped in 2018, up 8 percent from $18.5 billion in 2017 to an 11-year high.
Completed home flips in 2018 yielded an average gross profit of $65,000 (the difference between median purchase price and median flipped sale price), down 3 percent from an average gross flipping profit of $66,900 in 2017.
This average gross flipping profit of $65,000 in 2018 represented an average 44.8 percent return on investment down from 50.3 percent in 2017, and down from an all-time high average gross flipping ROI of 51.0 percent in 2016.
Among 53 metropolitan areas analyzed in the report with at least 1 million people, those with the highest home flipping rate in 2018 were Memphis, Tennessee (11.7 percent); Phoenix, Arizona (9.1 percent); Las Vegas, Nevada (8.7 percent); Tampa-St. Petersburg, Florida (8.2 percent); Birmingham, Alabama (7.6 percent).
Other major markets in the top 10 for highest 2018 home flipping rate were Baltimore, Maryland; St. Louis, Missouri; Philadelphia, Pennsylvania; Orlando, Florida; and Nashville, Tennessee.
Among metro areas with at least 1 million people, those with the biggest annual increase in home flipping rate in 2018 were Boston, Massachusetts (up 33.3 percent); Tucson, Arizona (up 27.3 percent); Raleigh, North Carolina (up 24.5 percent); Columbus, Ohio (up 13.1 percent); and Hartford, Connecticut (up 12.8 percent).
Other major markets in the top 10 for the biggest increase in home flipping rate in 2018 were New York, New York; Charlotte, North Carolina; Grand Rapids, Michigan, Pittsburgh, Pennsylvania and Milwaukee, Wisconsin.
Homes flipped in 2018 took an average of 180 days to complete the flip, down from 181 days in 2017 but up from 159 average days to flip 10-years ago.