A total of 72,543 single-family homes and condominiums were flipped in the third quarter, according to new data from ATTOM. This represented 7.2% of home sales, or one of every 14 transactions – down from 7.9% during the second quarter and from 7.7% in the third quarter of last year.
The third quarter flipping rate is the lowest point in two years, but fewer flips did not result in fewer profits. Investor returns increased for the third quarter in a row – the typical profit margin in the third quarter was 29.8%. The median $305,000 resale price of homes flipped nationwide in the third quarter of 2023 generated a gross profit of $70,000 above the median investor purchase price of $235,000.
Regionally, the highest third quarter flipping rate was in the South (9.1%), followed by the West (8.1%), Midwest (6.5%) and Northeast (5.2%). During the third quarter, 62.9% of flipped homs were purchased by investors with cash.
“The comeback for the home-flipping industry is looking more like a real trend than a temporary break in what had been a pretty bleak couple of years,” said Rob Barber, CEO for ATTOM. “For sure, investment returns still aren’t anywhere close to where they were a couple of years ago. The latest nationwide profit margin also remains barely within the spread that covers the usual holding costs on flips, with wide variations around the country. Nevertheless, home flippers continue to head back in the right direction.”
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