WRE NEWS December 15, 2024
Buyer
A total of 74,618 single-family homes and condominiums were flipped in the third quarter, according to new data from ATTOM. This accounted for 7.2%, or one of every 14 home sales, during that period.
The third quarter total is down slightly from 7.6% of all sales in second quarter and matched the 7.2% level in the third quarter of 2023.
During the third quarter, home flipping nationwide typically generated just a 28.7% return on investment before expenses on homes re-sold, down from 31.2% in the second quarter. This decline broke a trend of six straight quarterly increases. Gross profits on typical flips around the country decreased to about $70,000, down by roughly $5,000 from the prior quarter and down $10,000 from highs reached two years ago, although still up slightly from the third quarter of 2023.
The top four metro areas that recorded the largest flipping rates during the third quarter were all in Georgia: Warner Robins (where flips comprised 22.7% of all home sales), Macon (16.8%), Atlanta (13.6%) and Columbus (12.8%). Memphis rounded out the top five with a 12.7% share.
“Home flippers just can’t seem to shake the doldrums. After more than a year when things were getting better, they turned notably worse again over the Summer,” said Rob Barber, CEO for ATTOM. “One quarter’s worth of numbers isn’t enough to make any grand statements about another downturn. The next six months should speak more to that, especially amid an ongoing tight housing market that should work in their favor. But as interest rates remain double what they were a few years ago and inflation keeps raising renovation costs, investors continue to have a tough time making the kind of profits that would lure more into the game.”
Stay up to date on the latest real estate trends.
January 17, 2025
If the idea of moving abroad has recently seemed a lot more appealing due to current events—you’re not alone.
January 17, 2025
January 1st is a fresh start. When the clock strikes midnight, no matter how many times you continue to mistakenly write 2024 instead of 2025, the new year is upon us.
January 17, 2025
Many people dream of moving abroad, whether it's to experience a different culture, a desire for a slower life, or as am escape from the ever changing political climat… Read more
January 17, 2025
There’s one essential step in the homebuying process you may not know a whole lot about and that’s pre-approval. Here’s a rundown of what it is and why it’s so importa… Read more
January 17, 2025
January 16, 2025
Having too much space sounds like the kind of problem we all wish we had. But in the case of this 17,200-square-foot house in Westlake, Texas, a suburb of Dallas, the … Read more
We Guide Homeowners through the complicated process of selling their home using our 4 Phase Selling Process and 3 Prong Marketing Strategy that alleviates their stress and moves them effortlessly to their next destination. Schedule a 15 Minute Complimentary Strategy Session Today