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A total of 72,960 single-family homes and condominiums were flipped in the first quarter of this year, according to new data from ATTOM. This represented 9% of all sales, compared to 9.4% in the first quarter of 2022 and 8% in the fourth quarter of last year.

Among flips nationwide, the gross profit on typical transactions – the difference between the median purchase price paid by investors and the median resale price – increased to $56,000 in the first quarter, compared with $70,000 in the first quarter of 2022 and $53,500 in the fourth quarter of 2022. The typical gross flipping profit of $56,000 in the first quarter translated into a 22.5% percent return on investment compared to the original acquisition price.

“Home-flipping investors across the U.S. may have finally halted the decline,” said Rob Barber, CEO of ATTOM. “In the first quarter, profit margins showed a slight upward turn after an extended slump, while interest in flipped homes continued to rise among buyers. However, investors shouldn’t assume they’re out of the woods just yet. Home-flipping carrying costs can easily erase a 22 percent return on gross profits, and it’s possible that the recent gain is merely a temporary blip. Nevertheless, the first-quarter trends offer some hope for investors indicating that brighter times may lie ahead.”