“It’s not as if profits have shot through the roof and investors are riding a new wave of good times,” ATTOM chief executive Rob Barber said in the report. “Far from it, as they continue to struggle to benefit from the broader market boom. But the second-quarter numbers did show another step in the right direction.”
Although the typical 30.4% profit margin for home flips remained about 25 percentage points below its peak in 2016, it was still an improvement from both the first quarter of 2024 and the low point of about 25% seen in early 2023. Gross profits on typical home flips also increased to $73,492, up from $70,000 in the previous quarter and significantly higher than last year’s low of $61,000.
Barber pointed out that the current market conditions, including tight housing supply and falling interest rates, are helping to boost home flipping returns. However, he noted that challenges remain.
“With the market rising amid tight supplies of homes for sale around the country and falling interest rates, conditions appear ripe for more improvement over the rest of the year as long as prices don’t shoot up past what most buyers can afford,” Barber said.
The home-flipping market showed mixed results across the country in the second quarter. Home flipping rates decreased in 159 of the 185 metro areas analyzed by ATTOM, with 62.2% of markets seeing declines compared to the same period last year. In most of these areas, flipping rates fell by less than one percentage point.
Source: mpamag.com