Home Flipping Returns Lowest Since 2014

In their most recent U.S. Home Flipping Report, ATTOM Data Solutions is reporting that homes flipped in the second quarter of 2018 yielded an average gross return on investment of 44.3%, down from 47.8% in the first quarter and down from 50%  in Q2 2017.  The second quarter number also represents the lowest average gross flipping ROI since Q3 2014.  As for the overall numbers, there were 48,768 U.S. single family homes & condos flipped in the second quarter of 2018, representing 5.2% of all sales.  In addition, 32% of flips were distressed sales, down from a peak of 68% in Q1 2010.

“Fewer distressed sales are limiting the ability of home flippers to find deep discounts even while rising interest rates are shrinking the pool of potential buyers for flipped homes,” said Daren Blomquist, senior vice president at ATTOM Data Solutions.