You read that headline right…..Flipping is back and it’s at a 10 year high. According to ATTOM Data Solutions’ 2016 Year-End U.S. Home Flipping Report, 193,009 single family homes & condos were flipped in 2016. That number is up 3.1% from 2015 and is the highest level since 2006 – which saw 276,067 flips. Overall, home flips accounted for 5.7% of all single family home and condos sales in 2016 – up from 5.5% from 2015. In addition to all that, homes flipped in 2016 sold for a median price of $189,900, a gross flipping profit of $62,624 above the median purchase price of $127,276 and representing a gross flipping return on investment (ROI) of 49.2%.
“Home flipping was hot in 2016, fueled by low inventory of homes in sellable or rentable condition along with a flood of capital — both foreign and domestic — searching for the returns and stability available with U.S. real estate….Investors in search of flipping returns are increasingly willing to move to secondary and tertiary housing markets and neighborhoods with older, smaller properties that are available at a deeper discount.” Said Daren Blomquist, senior vice president at ATTOM Data Solutions.