RISMedia
  • News
  • Premier
  • Publications
  • Events
  • Education
  • Newsmakers
  • Power Broker
No Result
View All Result
  • Agents
  • Brokers
  • Teams
  • Marketing
  • Coaching
  • Technology
  • More
    • Headliners New
    • Luxury
    • Best Practices
    • Consumer
    • National
    • Our Editors
Join Premier
Sign In
RISMedia
  • News
  • Premier
  • Publications
  • Events
  • Education
  • Newsmakers
  • Power Broker
No Result
View All Result
RISMedia
No Result
View All Result

Flipped Homes Rise to Highest Level in 15 Years

Home Agents
By RISMedia Staff
March 31, 2022
Reading Time: 2 mins read
Flipped Homes Rise to Highest Level in 15 Years

Amid the list of milestones that the housing market tallied in 2021, a new report from ATTOM Data Solutions indicates that fix-and-flip investors contributed a record performance of their own.

The organization released its year-end 2021 U.S. Home Flipping Report, which found that the number of single-family homes and condos flipped last year saw a 26% increase from 2020. That translates to 323,465 in 2021, marking a 15-year high.

Key findings:

  • There were 96,773 home flips in the fourth quarter of 2021
  • Home flipping rates were down in 53% of local markets, with the most significant drops in Northeast and West
  • The number of home flips purchased with financing dipped to the lowest level in three years (38.7%)
  • Typical gross profits on home flips were $65,000 in 2021—down from a 15-year high of $67,000 in 2022
  • Home flipping returns drop to a 13-year low
  • Average time to flip nationwide down to 153 days

The takeaway:

Based on ATTOM’s report, the number of homes that investors flipped climbed to a total not seen since 2006, which hit nearly 334,000 homes flipped.

According to ATTOM, last year’s flips represented 5.5% of all U.S. home sales, a modest decline from 2020 and 2019, which tallied 5.8% 6.1%, respectively.

Despite investors’ uptick in turnaround sales, the report also notes that house flippers took a hit to their profit margins last year. According to ATTOM, homes flipped in 2021 typically generated a gross profit of $65,000 nationwide—down 3% from $67,000 in 2020.

“While gross profits were lower for fix-and-flip investors in 2021, there may have been offsets that protected net profits,” said Rick Sharga, ATTOM’s executive vice president of market intelligence. “Fewer flippers financed their purchases, so their cost of capital was lower. And it took less time to execute a flip, reducing holding costs, and suggesting that less extensive—and less expensive—repairs were needed to bring the properties to market. A lot of the mark-up on fix-and-flip properties historically has come from the value of those repairs, but so have a lot of the costs that reduce net profits.”

“In an environment where mortgage rates are rising as rapidly as they are today, investors buying with cash are at a distinct advantage over consumer homebuyers,” Sharga added. “The combination of rising home prices, rising mortgage rates and rising inflation is undoubtedly creating affordability issues for many prospective buyers, so it’s possible that there will be less competition overall for the limited inventory of homes available for sale.”

Tags: ATTOMHome-Flipping
ShareTweetShare

RISMedia Staff

Related Posts

Real Estate in the Metaverse: Where Virtual Meets Reality
Agents

Real Estate in the Metaverse: Where Virtual Meets Reality

May 17, 2022
Annual Rent Growth Hits One-Year Record High in March
Agents

Annual Rent Growth Hits One-Year Record High in March

May 17, 2022
Share of Mortgage Loans in Forbearance Decreases to 0.94% in April
Agents

Share of Mortgage Loans in Forbearance Decreases to 0.94% in April

May 17, 2022
IDX Broker Expands Client Services to Incorporate IXACT CRM
Agents

IDX Broker Expands Client Services to Incorporate IXACT CRM

May 17, 2022
Giving Back a Priority for Thriving Fort Lauderdale Team
Agents

Giving Back a Priority for Thriving Fort Lauderdale Team

May 17, 2022
Four Ways Real Estate Team Leaders Can Overcome Leadership Loneliness
Agents

Four Ways Real Estate Team Leaders Can Overcome Leadership Loneliness

May 17, 2022

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Tip of the Day

How Agents Turn Low Home Inventory Into a Marketing Advantage

By targeting the right prospects, creative messaging, and using proven marketing tactics, you can break through the crowded marketplace and... See How

Business Tip of the Day provided by
REGISTER NOW

Recent Posts

  • Real Estate in the Metaverse: Where Virtual Meets Reality
  • Annual Rent Growth Hits One-Year Record High in March
  • Share of Mortgage Loans in Forbearance Decreases to 0.94% in April

Categories

  • Spotlights
  • Best Practices
  • Advice
  • Marketing
  • Technology
  • Social Media

The Most Important Real Estate News & Events

Click below to receive the latest real estate news and events directly to your inbox.

Sign Up
By signing up, you agree to our TOS and Privacy Policy.

About Blog Our Products Our Team Contact Advertise/Sponsor Media Kitt Email Whitelist Terms & Policies

© 2022 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.

No Result
View All Result
  • Home
  • Premier
  • News
    • Agents
    • Brokers
    • Teams
    • Consumer
    • Marketing
    • Coaching
    • Technology
    • Headliners New
    • Luxury
    • Best Practices
    • National
    • Our Editors
  • Publications
    • Real Estate Magazine
    • Past Issues
    • Custom Covers
  • Events
    • Upcoming Events
    • Podcasts
    • Event Coverage
  • Education
    • Get Licensed
    • REALTOR® Courses
    • Continuing Education
    • Luxury Designation
    • Real Estate Tools
  • Newsmakers
    • 2022 Newsmakers
    • 2021 Newsmakers
    • 2020 Newsmakers
    • 2019 Newsmakers
  • Power Broker
    • 2022 Power Broker
    • 2021 Power Broker
    • 2020 Power Broker
    • 2019 Power Broker
  • Join Premier
  • Sign In

© 2022 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.

RISMEDIA PREMIER CONTENT

INSIGHTS THAT ELEVATE YOUR VALUE

logo-rismedia-white
x