A total of 67,817 single-family homes and condominiums were flipped in the first quarter, according to new data from ATTOM. This represents 8.7% of the quarter’s home sales, or one of every 12 transactions.
The first quarter’s activity was up from 7.7% of all home sales during the fourth quarter of 2023, which marks the second straight quarterly gain. However, the portion was down from 9.8% of all sales in the first quarter of 2023.
The median $312,375 resale price of homes flipped nationwide in the first quarter generated a gross profit of $72,375 above the median investor purchase price of $240,000. That resulted in a typical 30.2% profit margin in the first quarter of 2024, up from 27.7% in the fourth quarter of 2023 and 25.3% in the first quarter of last year. However, the first quarter’s results were far beneath the 56.3% level in mid-2016 and from a more recent peak of 48.8% in 2020.
Roughly two-thirds of homes flipped (63.8%) in the first quarter were purchased by investors with cash, while 11.2% of flipped homes were sold to buyers using loans backed by the Federal Housing Administration, marking the second straight quarterly increase.
“The latest numbers show that investors still face an uphill climb to clear significant profits after expenses,” said Rob Barber, CEO for ATTOM. They, like others, also face tenuous times amid a housing market boom that’s cooled down over the past year. But we now have a year’s worth of a trend showing that things have started to turn around for the flipping industry, with clear signs of increasing interest flowing into the market.”
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