September 22, 2019
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It’s getting harder to be a home flipper. As easy as it might seem on reality television shows, the math is now trickier, thanks to a housing market loaded with roadblocks. Home prices are high, supply of homes for sale is low and the cost of renovation materials is rising. Investors flipped 59,876 single-family homes and condominiums in the second quarter of this year, down just over 5% compared with the same period a year ago, according to Attom Data Solutions. It defines a flip as a home bought and sold within a 12-month period. The average gross profit on a flip was $62,700, which translated into a 39.9% return on investment, after renovation and carrying costs. That is down from a 40.9% gross flipping return in the first quarter of this year and a 44.4% return in the second quarter of 2018. Returns have been falling for six straight quarters and are now at the lowest level since the end of 2011. Read more |
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