Closing Complex Loans Faster With a Digitized Client Workflow

Join us for a discussion on changes in market demographics, suppliers and how focusing on customer experience and a few simple steps during the mortgage loan process can close deals 3x faster.

engage.marketing event: All eyes on purchase

To help power your business forward, we’re bringing together the smartest minds in purchase mortgage marketing to share the insights, tactics and strategies that set leaders apart.

Home appraisal’s ugly history and uncertain future

This is Part I of a deep dive into the home appraisal industry. Today we explore the origins of the appraisal industry and its current lack of diversity.

2021 Agent Rankings now live

Today RealTrends + Tom Ferry announce the 16th annual The Thousand of America's top 1,000 real estate sales and professionals and teams.

Real Estate

Home flipping profits hit 8-year low, but that's not stopping anyone

Home-flipping activity is simultaneously at an 8-year high

According to a new report from ATTOM Data Solutions, home flipping activity in the U.S. increased to an eight-year high in 2019, while returns dropped to an eight-year low.

In 2019 there were $32.5 billion in financed flips, up 21% from 2018. This $32.5 billion in value was across 245,864 single-family homes and condos.

In 64% of local markets, home flipping rates increased from 2018 to 2019, with the largest in Laredo, Texas, up a whopping 103.5%. Meanwhile, there were 34 counties with a flipping rate of at least 10%, and nine ZIP codes had a home flipping rate of at least 25%.

Although flipping activity rose, profit margins dropped. Homes that were flipped in 2019, on average, generated a gross profit of $62,900 nationwide, down 3.2% from $65,000 in 2018 and 6% from the post-recession peak of $66,899 in 2017, ATTOM reported.

“Home-flipping profits across the U.S. dropped again in 2019 as the business of buying and selling houses absorbed its worst year since the housing market was mired in the fallout from the Great Recession,” said Todd Teta, chief product officer at ATTOM Data Solutions. “This happened as the cost of buying properties continued to rise faster than gains on resale.”

“That’s not to say that the home-flipping industry is tanking or losing its allure for investors because home flipping rates are higher than they’ve been in eight years. But profits did continue to decline again for investors,” Teta continued.

The number of flipped homes last year represented 6.2% of all home sales in the nation during that year, making it an eight-year high.

A typical gross flipping profit of $62,900 also means flippers received a 40.6% return on investment compared to the original acquisition price. This is down from a 45.8% gross flipping ROI in 2018 and down from 51.4% ROI in 2017.

Most Popular Articles

Mortgage forbearance drops as expiration date nears

Mortgages in forbearance fell for the 15th consecutive week last week to 4.04% of servicers’ portfolio volume ― a 12 basis point decline, according to a survey from the Mortgage Bankers Association.

Jun 14, 2021 By

Latest Articles

Title Alliance opens second branch in Washington

Pennsylvania-based Title Alliance Ltd. has added a second office in Washington, expanding its presence in the Pacific Northwest.

Jun 16, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please