A little less than 6 percent of all homes sold during the second quarter this year were flips, according to ATTOM Data Solutions Q2 2017 U.S. Home Flipping Report.
The 53,638 single family homes and condos flipped nationwide during the second quarter of 2017 was down from 6.9 percent from the previous quarter but unchanged from a year ago, ATTOM said.
According to the report, the average profit for homes sold twice with a 12-month period during the second quarter was $67,516, a 48.4 percent return on investment (ROI) for flippers but slightly down from the previous quarter. ATTOM said the average gross flipping ROI has decreased for three consecutive quarters.
“Home flippers are employing a number of strategies to give them an edge in the increasingly competitive environment where flipping yields are being compressed,” ATTOM Data Solutions Senior Vice President Daren Blomquist said in a release.
“Many flippers are gravitating toward lower-priced areas where discounted purchases are more readily available — often due to foreclosure or some other type of distress,” Blomquist added. “Many of those lower-priced areas also have strong rental markets, giving flippers a consistent pipeline of demand from buy-and-hold investors looking for turnkey rentals.”
The highest rates of flips were in Nevada (8.4 percent); the District of Columbia (8.2 percent); Maryland (7.4 percent); Tennessee (7.3 percent); and Alabama (7.3 percent), the report found.
Among metropolitan areas, the highest rates of flips were in Memphis (11.1 percent); Fresno, Calif. (9.6 percent); York, Pa. (9.4 percent); Las Vegas (8.9 percent); and Lakeland, Fla. (8.8 percent).
The report said the highest average gross flipping ROIs in the second quarter were in Pennsylvania (103.1 percent); Louisiana (100 percent); Ohio (88.9 percent); New Jersey (81.7 percent); and the District of Columbia (81.2 percent).
ATTOM said metropolitan areas with the highest ROIs were Pittsburgh (146.6 percent); Baton Rouge, La. (120.3 percent); Philadelphia (114 percent); Harrisburg, Pa. (103.3 percent); and Cleveland (101.8 percent).