AgentBrokerage

Home flipping rising, helping to combat inventory issues

Home flip shares jump 20 percent quarter-over-quarter, double the usual seasonal increase
  • An increase in flipped properties may be helping to provide more livable properties that entry-level and experienced homebuyers alike wouldn’t otherwise consider.
  • Flipping as a share of all home sales jumped 20 percent since Q4 2015 and 3 percent year-over-year to reach 6.6 percent of all single-family and condo sales.

With declining home inventory across the U.S., an increase in flipped properties may actually be helping to provide more livable properties that entry-level and experienced homebuyers alike wouldn’t otherwise consider. RealtyTrac’s Q1 flipping report reveals that flips have picked up steam. Flipping as a share of all home sales jumped 20 percent since Q4 2015 and 3 percent year-over-year to reach 6.6 percent of all single-family and condo sales. Home flip shares are at the highest level since the first quarter of 2014. “I see flipping as a positive, healthy sign right now -- especially in a market without a lot of inventory in good condition,” said Daren Blomquist, senior vice president of RealtyTrac. “Flipped homes are somewhat stepping in to the gap left by the lack of home building in the country.” Is this jump significant? Although some might assume the high quarterly increase is related to seasonality, the first quarter jump is almost double the ...